This post was written by Minyanville contributor Sean Udall.

Broadcom (NASDAQ: BRCM) reports tonight and it is getting hit due to the poor report from Qualcomm (NASDAQ: QCOM). QCOM lowered guidance quite a bit -- in fact, enough that I likely may not have to worry much about QCOM for the next couple quarters. Low $30's would present solid value.

Getting back to BRCM, I still feel it is one of the few must own chip names. I think it has enough innovation and diversification to avoid the 35-40% sequential reductions I am seeing from many in the chip space. However, I also think a lowering of the bar is priced into BRCM's shares and anything less than a disaster should keep the stock above $16.50 (assuming we avoid another shock down to the whole market). Anything around that level ($16.50) and lower would have me adding the shares. I've taken gains recently in trading shares and am hoping to add BRCM back on just a bit more weakness.

MOST NOTEWORTHY: Horace Mann, Sonus Networks and Mellanox were today's noteworthy initiations:

• Keefe Bruyette views Horace Mann (NYSE: HMN) as fairly valued and expects the competitive personal lines environment and deteriorating loss trends to act as strong headwinds. Shares were assumed with a Market Perform rating and $19 target.
  
• Thomas Weisel initiated Sonus Networks (NASDAQ: SONS) with a Market Weight rating and $3.50 target and believes management's expectation for 20% FY08 revenue growth is too aggressive.
  
• Susquehanna expects Mellanox (NASDAQ: MLNX) to benefit from the growing end markets for InfiniBand technology, and started shares with a Positive rating and $20 target.

OTHER INITIATIONS:

• Jefferies initiated McKesson (NYSE: MCK) with a Buy rating and $67 target.
  
• Philip Morris (NYSE: PM) was initiated at JP Morgan with an Overweight rating and $62 target, and added to the firm's Analyst Focus List.
  
• Baird started Pharmasset (NASDAQ: VRUS) with a Neutral rating and $21 target.
  

MOST NOTEWORTHY: Synthesis Energy, Lamar Advertising and Urban Outfitters were today's noteworthy initiations:

• Merriman believes Synthesis Energy Systems Inc (NASDAQ: SYMX) is well-positioned as it begins to leverage its exclusive global license for U-GAS technology and commences the deployment of its coal-to-methanol production facilities in China. The firm started shares with a Buy rating.
• Lamar Advertising Company (NASDAQ: LAMR) was initiated with a Buy rating and $51 target at Jefferies, as they believe shares are oversold at current levels.
• William Blair believes Urban Outfitters Inc (NASDAQ: URBN) will benefit from both strong sales and a steep margin recovery in the coming two years. The firm assumed coverage of Urban with an Outperform rating.

OTHER INITIATIONS:

• Lehman started United Rentals Inc (NYSE: URI) with an Equal Weight rating and $22 target.
• Credit Suisse assumed coverage of Mellanox Technologies (NASDAQ: MLNX) with a Neutral rating.
• EPIQ Systems Inc (NASDAQ: EPIQ) was initiated with a Market Perform rating at Wachovia.