We will buy 50 shares of Broadcom (AVGO) at roughly $252.82 after you receive this Alert. Following the trade, AVGO will represent roughly 2.28% of the portfolio. 

We are using some of the proceeds from the Snap-On (SNA) sale earlier today (read here) to buy more Broadcom, a name that has shown solid growth. We want to be sure we are adding more shares before AVGO gets further away from us, and while today's trade violates our basis, we believe it is justified given how strong the company is. 

We said in last week's members-only call (watch here) how we believe it is not too late to get into AVGO, and given our growing cash position for our recent sales, we wanted to put our money to good use by purchasing more shares today. As we look to position ourselves into the back half of the year, we note that Morgan Stanley named AVGO one of their top picks for the second half of the year. 

Skyworks Solutions (SWKS) , a similar provider of chips, reported solid earnings last night with strong growth, confirming that the semiconductor industry is healthy and getting stronger. Both are chip providers for the highly anticipated iPhone 8, and are poised to benefit with the growing demand for data. As a result, we fully expect Broadcom to follow suit when they report, which is when we could expect to see another price jump. 

To read more about when we would violate our basis, click here

In addition, we want to inform members that had we not been restricted today, we would be very tempted to buy more shares of KeyCorp (KEY) for the portfolio. The stock continues to pull back following yesterday's earnings (read our initial analysis here), and we do not believe the downward trading is consistent with our view of the quarter or our outlook. 

KEY beat consensus on both the top and bottom lines, and we see continued success for the company. During the call yesterday, CEO Beth Mooney had a cautious outlook for the company, specifically in its loan business, which could explain the poor trading over the last two days. However, after her interview on Mad Money last night, we believe she eased concerns over the tepid full-year guidance she previously addressed. In addition, the company is coming off a strong deal with First Niagara that has been accretive, with the company announcing yesterday that it hit its $400 million cost-saving target.

Looking forward, Mooney believes there is still room to grow in its cost savings from the deal as its execution has been essentially flawless. With the deal closed, the company will look to improve efficiency, and jump-start the initiatives it has previously put on hold, benefiting the stock further long term. 

Our outlook of the company has not changed, and the recent pullback has created a great buying opportunity. We believe this level has created a great chance to get into the name if we did not already own shares.