Broadcom Corp. (BRCM), a major technology innovator and global leader in semiconductors for wired and wireless communications, offers a portfolio of system-on-a-chip (SoC) and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. It hold over 3,650 U.S. and 1,450 foreign patents and more than 7,750 additional pending patent applications. It also boasts of one of the broadest intellectual property portfolios addressing both wired and wireless transmission of addressing both wired and wireless transmission of voice, video, data and multimedia. It markets its products in the United States through direct sales force, distributors, and manufacturers’ representatives. The Company also sells its products internationally through regional offices, as well as through a network of independent distributors and representatives in Asia, Australia, Europe and North America.

Founded in 1991, BRCM is headquartered in Irvine, California.

Source: Reuters.com, SEC Filings, FY ending December

BRCM posted Q3 EPS of 16 cents, a 49% decline from the year-ago period. Excluding certain items, BRCM would have posted EPS of 40 cents, above consensus estimates of 33 cents. Revenues for the quarter fell 3.4% year-over-year to $1.25 billion, but is above the consensus estimates of $1.16 billio

“Broadcom executed well in the third quarter, generating revenue growth of over 20% sequentially for the second quarter in row,” said BRCM president and CEO Scott A. McGregor. “This strong revenue growth is well above the semiconductor industry growth rate, and was driven by a combination of our target markets continuing to recover, new product ramps and the breadth of Broadcom’s product line, continued McGregor.”

The Company, however, is warning that its fourth quarter revenues could be flat versus the prior quarter, which disappointed many investors. As of last close on October 23, 2009, BRCM closed at $28.50, 8.65% below its 52-week high of $31.20, set on September 23, 2009.

Moving Average

BRCM closed below its 13 day moving average on October 22. This is generally considered to be an indication of a bearish trend.

MACD

BRCM’s MACD is indicating a weak bearish signal. Although the indicator is above the critical level of 0, which implies that the underlying moving averages are bullish, the MACD has crossed below its 9day moving average or signal line. This suggests that positive momentum has begun to slow.

Bollinger Bands

BRCM is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.

Source: http://www.scottrade.com

Chipotle Mexican Grill Inc. (CMG) is a developer and operator of fast-casual, fresh Mexican food restaurants in 33 states throughout the United States, the District of Columbia and Ontario, Canada. The Company’s restaurants serve a focused menu of tacos, burritos, salads and burrito bowls. CMG competes in a category of dining called “fast-casual,” which offers full table service but promises a higher quality of food and atmosphere than a fast food restaurant. This type of restaurant is considered to be the fastest growing segment of the restaurant industry. The Company opened 26 new restaurants during the third quarter of 2009 and operated 911 restaurants as of the end of the quarter ended September 30, 2009.

Founded in 1993, CMG is based in Denver, Colorado.

Source: Reuters.com, SEC Filings, FY ending December

For the third quarter ended September 30, 2009, CMG announced it earned $34.5 million, or $1.08 per share, up from a profit of $19.5 million, or 59 cents per share, a year ago. Compared to the third quarter of 2008, revenue rose 13.8% to $387.6 million while comparable restaurant sales increased 2.7%. The Company attributed the increase in revenue to new restaurants not in the comparable base and a 2.7% increase in comparable restaurant sales in the third quarter. Comparable restaurant sales growth was reportedly due to the impact of menu price increases partially offset by a decline in customer visits. Net income for the third quarter $34.5 million, up 76.9% from the year-ago quarter, while diluted earnings per shares rose 83.1% to $1.08.

“Our performance continues to be driven by our efficient business model, and our emphasis on doing just a few things, but always working hard to do them better. This approach to running our business enables us to continue to deliver impressive financial performance to our shareholders even in this challenging environment,” said Steve Ells, CMG founder, chairman, and Co-CEO.

While the Company posted a stronger-than-expected third-quarter profit and said it continued its previously announced plans to add 120 to 130 new locations next year, shares were driven down on a disappointing expansion forecasts for 2010. According to the Company, a quarter of new locations will be built in its smaller store format, which costs less to build but also typically draws fewer customers.

Commenting on this, Wedbus analyst Rachel Rothman wrote in a research note published Friday, “In our view, the strategy signals the potential saturation of larger format restaurants and could cause investors to question (Chipotle’s long-term) profitable growth trajectory.”

As of last close on October 23, 2009, CMG closed at $82.35, 16.53% below its 52-week high of $98.66, set on September 29, 2009.

Moving Average

CMG is currently below its 13 day moving average. This bearish sign is even more significant because the moving average is also trending lower.

MACD

The MACD for CMG currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.

Bollinger Bands

CMG is trading near its lower Bollinger Band. This suggests that the stock price is low relative to its recent price action.

Source: http://www.scottrade.com

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