Below is the Qualcomm Inc. from 2001 to 2023 applying the Price Momentum Indicator.
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Category Archives: qcom
Is Qualcomm Finally Untethered?
On April 16, 2019, Qualcomm (QCOM) and Apple (AAPL) agreed to settle their ongoing disputes. The outcome was significant for Qualcomm.
As Charles H. Dow, co-founder of the Wall Street Journal has said:
“The one sure thing in speculation is that values determine prices in the long run. Manipulation is effective temporarily, but the investor establishes price in the end. The object of all speculation is to foresee coming changes in values. Whoever knows that the value of a stock has run ahead of price and is likely to be sustained can buy that stock with confidence that as its value is recognized by investors, the price will rise (Dow, Charles H. Review and Outlook. Wall Street Journal. February 25, 1902.)."
For many years, the market price of QCOM appeared to be reflecting the neglect of speculators. In the meantime, investors slowly and selectively accumulated shares of QCOM in anticipation of the high risk proposition that QCOM would prevail against AAPL.
As seen in our chart below, QCOM has found its share price at the undervalued level several times since 2016. The September 13, 2018 announcement of the accelerated share buyback seems as though it was at an elevated prices. However, as our updated 10-Year price target indicates, the prospects for QCOM are far in excess of current levels.
In many respects, the price of Qualcomm has been at the mercy of Apple and their ongoing lawsuits. However, Charles H. Dow has the following to say of such conditions:
“The manipulator is all-powerful for a time. He can mark prices up or down. He can mislead investors inducing them to buy when he wishes to sell, and to sell, when he wishes to buy; but manipulation in a stock cannot be permanent, and, in the end, the investor learns the approximate truth. His decision to keep his stock or to sell it then makes a price independent of speculation and, in a large sense, indicative of true value (Dow, Charles H. Review and Outlook. Wall Street Journal. October 18, 1901.).”
We believe that Apple has played into the hands of value investors and we’re thankful for it. Now the test becomes whether Qualcomm will realize the overvalued targets that we have set for the stock, as seen here.
Posted in Charles H. Dow, Dow's Value Theory, qcom, Qualcomm
Qualcomm 10-Year Targets
Below are the valuation targets for Qualcomm (QCOM) for the next 10 years. Continue reading
Posted in 10-year Targets, Altimeter, qcom
Qualcomm Chokes and Other Thoughts
On January 29, 2015, Qualcomm (QCOM) announced that a “…key customer passed on new chip…” On the news, QCOM stock fell as much as –12%.
Nasdaq 100 Watch List: June 8, 2012
Below are the Nasdaq 100 companies that are within 10% of their respective 52-week lows. Stocks that appear on our watch lists are not recommendations to buy. Instead, they are the starting point for doing your research and determining the best company to buy. Ideally, a stock that is purchased from this list is done after a considerable decline in the price and rigorous due diligence.
| symbol | Name | Price | P/E | EPS | Yield | P/B | % from Low |
| SYMC | Symantec Corporation | 14.57 | 9.28 | 1.57 | - | 2.06 | 2.17% |
| DELL | Dell Inc. | 12.12 | 6.92 | 1.75 | - | 2.28 | 2.71% |
| CHRW | CH Robinson Worldwide Inc. | 57.92 | 21.6 | 2.68 | 2.3 | 7.51 | 3.65% |
| EA | Electronic Arts Inc. | 13.47 | 58.57 | 0.23 | - | 1.75 | 4.74% |
| INFY | Infosys Ltd. | 43.62 | 14.54 | 3 | 1.3 | 3.81 | 5.36% |
| NVDA | NVIDIA Corporation | 12.12 | 14.8 | 0.82 | - | 1.72 | 5.67% |
| GMCR | Green Mountain Coffee Roasters | 23.13 | 11.11 | 2.08 | - | 1.76 | 6.25% |
| EXPD | Expeditors Int'l of WA | 39.36 | 22.75 | 1.73 | 1.4 | 3.95 | 6.49% |
| CTRP | Ctrip.com Int'l | 18.66 | 17.86 | 1.04 | 0 | 2.38 | 6.63% |
| SPLS | Staples, Inc. | 12.86 | 9.23 | 1.39 | 3.4 | 1.24 | 7.71% |
| LRCX | Lam Research | 37.62 | 16.65 | 2.26 | - | 1.72 | 8.07% |
| NFLX | Netflix, Inc. | 65.64 | 22.22 | 2.95 | - | 5.41 | 8.14% |
| WYNN | Wynn Resorts Ltd. | 104.21 | 22.1 | 4.72 | 1.9 | 46.53 | 8.76% |
| NTAP | NetApp, Inc. | 30.33 | 19.2 | 1.58 | - | 2.65 | 9.14% |
| MCHP | Microchip Technology Inc. | 32.01 | 19.4 | 1.65 | 4.4 | 3.08 | 9.25% |
| VOD | Vodafone Group | 26.58 | 12.6 | 2.11 | 7.5 | 1.1 | 9.34% |
| MRVL | Marvell Technology | 12.28 | 13.15 | 0.93 | 2 | 1.4 | 9.35% |
| ORCL | Oracle Corporation | 27.16 | 14.23 | 1.91 | 0.9 | 3.16 | 9.87% |
| CTSH | Cognizant | 58.85 | 19.81 | 2.97 | - | 4.14 | 9.92% |
Watch List Summary
Of interest on our watch list is NVIDIA (NVDA). According to Yahoo!Finance, “NVIDIA Corporation provides graphics chips for use in smartphones, personal computers (PC), tablets, and professional workstations markets worldwide.” As we’ve described in the past, we have a strong interest in chip sector stocks and believe that the long-term prospects for companies in the chip industry is very appealing.
NVDA first appeared on our watch list on June 12, 2010. At that time, NVDA was trading at $11.61. By February 18, 2011, NVDA was trading as high as $25.68 which was a gain of over +120%. We’re not certain that NVDA’s decline has ended. According to Edson Gould’s Speed Resistance Lines, NVDA has already declined below the conservative downside target of $17.87 based on the February 2011 high. The persistence of the current decline suggests that the stock could decline to the extreme downside target of $8.67. We’re doing everything we can to hold off buying this stock at the current time.
Watch List Performance Review
The following is a performance review of the top five Nasdaq 100 Watch List from June 4, 2010. Keep in mind that this is a 2 year performance review instead of a 1 year review.
|
Symbol
|
Name | 2010 | 2012 | % change |
| GILD | Gilead Sciences, Inc. | $34.71 | 49.21 | 41.77% |
| SYMC | Symantec Corporation | $13.92 | 14.43 | 3.66% |
| ERTS | Electronic Arts Inc. | $15.81 | 13.07 | -17.33% |
| APOL | Apollo Group, Inc. | $51.48 | 32.42 | -37.02% |
| QCOM | QUALCOMM | $35.30 | 55.85 | 58.22% |
| average | 9.86% | |||
| NDX | Nasdaq 100 | 1,832.04 | 2,478.13 | 35.27% |
As can you can see, the list of top five stocks significantly underperformed the Nasdaq 100 (NDX), mainly due to Apple Inc. (AAPL) having an outsized impact on the index. However, underneath the static 2-year performance data is a story to be told, which is the basis of our New Low investment strategy.
In the chart below, take note of the period around July 2011. At that time, Qualcomm had gains of +60%, Electronic Arts had gains of +55%, Symantec had gains of +42% and Gilead Sciences had gains of +21%. Only Apollo Group had losses to compare against the other stocks.
In the case of Symantec and Electronic Arts, they have come full circle after a 2-year period. This cycle is not unusual for most of the stocks that we track. Even when the stock does not approach the prior low of a watch list, many stocks attain a 52-week low after 2 to 2.5 years (as in the NVDA example above). Be on the lookout for stocks that have similar cycles like EA, SYMC and NVDA since their ability to replicated such moves adds to the prospect that they could pull a repeat performance.
Posted in apol, EA, electronic arts, GILD, gilead sciences, Nasdaq 100 Watch List, NVDA, Nvidia, qcom, Qualcomm, SYMC
Investment Strategy and Timeline: Qualcomm (QCOM)
Current headlines are all about the latest and greatest gadgets like the Apple iPhone. With the news, traders flock into the stock as well as the derivatives for Apple (AAPL). Analysts recommended Verizon (VZ) over AT&T (T) because of the new growth component, the iPhone. Now the derivative traders are interested in the chip sector with companies like Qualcomm (QCOM). With the latest rumor that Apple will be dropping Infineon / Intel alliance for Qualcomm's CDMA technology, analysts and traders have suddenly fallen in love with QCOM. With this change in sentiment, Qualcomm has risen almost 18% since September 1st.
The New Low team hasn't always been right in timing the buy but we have been (somewhat) right in suggesting investors look at QCOM back in the March and April 2010 time frame. The stock appeared on our Nasdaq 100 Watch List on January 30, 2010 at $39.19. Although we didn't recommend the stock then, we tracked the stock for several months. In late March, a reader submitted a Research Request on Applied Material (AMAT) which put us to work.
At the end of that article, we came to a conclusion that AMAT was too rich for our blood and suggested QCOM as a better alternative. In addition, we offered a specific strategy on the purchase and how to allocate capital which panned out beautifully. On April 22, 2010 QCOM dropped like a rock after reporting earnings. With a recent dividend increase of 12% and a good entry point of $38, we took a position in QCOM.
For those that followed suit, they would be sitting on an 18% gain or 48% annualized gain. In addition to buying outright stock, we also incorporated an option strategy as a way to add extra cash. This strategy added 1.2% to our bottom line. In addition, QCOM paid 3 dividend payments during this time adding more to our bottom line.
Today, we have taken our gain. Although we didn't buy QCOM at the beginning of the rise in September, as we held the stock, we were paid for the wait as the dividend covered the commission. The option premiums were additional cash we took from speculators. The net return of 18% is more than enough for us to sit back, review our watch list, and wait for a better risk/reward alternative. While QCOM can certainly move to $50, an additional 10%, we can't hope or dream. We are happy to take our 18% gain and head back to the drawing board, our watch list.
Timeline:
1/30/10 - QCOM appeared on our watch list.
3/23/10 - Research Request on AMAT but we suggested QCOM.
4/22/10 - QCOM drop, possible entry point.
4/23/10 - we took position with option strategy.
7/16/10 - options expired, we sat on 3.5% loss.
9/30/10 - we have taken the 18% and go back to our drawing board, the watch list.
Email our team here.
Nasdaq 100 Watch List
Watch List Summary
At the end of the week for September 17, 2010, the top performing stocks from our Nasdaq 100 list for August 15, 2010 are Oracle (ORCL) with a gain of 21.27%, Qualcomm (QCOM) with a gain of 12.07% and Computer Associates (CA) with a gain of 11.57%.
The worst performing stocks from our August 15th watch list are Intel (INTC) down –1.78%, Applied Materials (AMAT) down –1.34% and Activision (ATVI) down –0.46%.
The average gain for the watch list was 6.33%. Of the two stocks that we pointed out as being standouts from August 15th, Garmin (GRMN) exceeded the average return by climbing 9.57% while Paychex (PAYX) underperformed the average gain by rising 3.92%.
A distinction that needs to be made between this week’s list and our August 15th list is that we’ve ranking the companies on this list by those stocks nearest their 52-week low. Our previous list was ranked by those stocks that had the highest dividend yield and within 20% of their respective 52-week low.
Performance Review
The following is a total return (appreciation plus dividends) performance review of our Nasdaq 100 Watch List from September 11, 2009:
- Stericycle (SRCL) up 44.48%
- Genzyme (GENZ) up 25.54%
- Pharmaceutical Product Development (PPDI) up 20%
- Cephalon (CEPH) up 5.92%
As a group, the average gain for the stocks mentioned was 23.99%. This is contrasted by the Nasdaq 100 gain of 16.07% in the same period of time.
 |
| *chart does not reflect dividend reinvestment for PPDI |
Nasdaq 100 Watch List
Below are the Nasdaq 100 companies that are within 20% of their respective 52-week lows. Stocks that appear on our watch lists are not recommendations to buy. Instead, they are the starting point for doing your research and determining the best company to buy. Ideally, a stock that is purchased from this list is done after a considerable decline in the price and rigorous due diligence.
| Symbol | Name | Price | P/E | EPS | Yield | P/B | % from Low |
| PAYX | Paychex, Inc. | 25.95 | 19.67 | 1.32 | 4.80% | 6.67 | 5.27% |
| INTC | Intel Corporation | 18.81 | 11.26 | 1.67 | 3.40% | 2.3 | 6.87% |
| AMAT | Applied Materials, Inc. | 11.02 | 24.44 | 0.45 | 2.50% | 2.03 | 7.33% |
| YHOO | Yahoo! Inc. | 13.89 | 22.77 | 0.61 | N/A | 1.59 | 7.34% |
| MXIM | Maxim Integrated Products, Inc. | 16.91 | 41.86 | 0.4 | 5.00% | 2.15 | 7.91% |
| GILD | Gilead Sciences, Inc. | 34.56 | 10.47 | 3.3 | N/A | 4.58 | 8.93% |
| ATVI | Activision Blizzard, Inc | 10.82 | 41.94 | 0.26 | 1.30% | 1.21 | 8.96% |
| DELL | Dell Inc. | 12.45 | 15.74 | 0.79 | N/A | 3.92 | 9.80% |
| RIMM | Research In Motion Limited | 46.72 | 10.24 | 4.56 | N/A | 3.2 | 9.85% |
| AMGN | Amgen Inc. | 55.22 | 11.73 | 4.71 | N/A | 2.28 | 9.87% |
| DISH | DISH Network Corporation | 18.77 | 11.26 | 1.67 | N/A | N/A | 10.02% |
| CSCO | Cisco Systems, Inc. | 21.86 | 16.46 | 1.33 | N/A | 2.82 | 10.31% |
| XRAY | DENTSPLY International Inc. | 30.66 | 16.55 | 1.85 | 0.70% | 2.6 | 10.45% |
| MSFT | Microsoft Corporation | 25.22 | 12 | 2.1 | 2.10% | 4.76 | 10.95% |
| SPLS | Staples, Inc. | 19.49 | 17.26 | 1.13 | 1.80% | 2.2 | 11.69% |
| PDCO | Patterson Companies Inc. | 27.15 | 14.67 | 1.85 | 1.50% | 2.3 | 12.52% |
| SHLD | Sears Holdings Corporation | 66.83 | 27.38 | 2.44 | N/A | 0.9 | 12.87% |
| GOOG | Google Inc. | 490.15 | 21.29 | 23.03 | N/A | 3.77 | 13.03% |
| LIFE | Life Technologies Corporation | 46.51 | 29.91 | 1.56 | N/A | 1.97 | 13.16% |
| STX | Seagate Technology. | 11.16 | 3.55 | 3.14 | N/A | 1.95 | 13.41% |
| FLIR | FLIR Systems, Inc. | 27.24 | 18.52 | 1.47 | N/A | 3.25 | 13.50% |
| GRMN | Garmin Ltd. | 29.64 | 8.95 | 3.31 | 5.10% | 2.21 | 13.52% |
| TEVA | Teva Pharmaceutical Industries | 53.48 | 19 | 2.82 | 1.20% | 2.48 | 13.81% |
| FLEX | Flextronics International Ltd. | 5.55 | 15.72 | 0.35 | N/A | 2.26 | 14.20% |
| COST | Costco Wholesale Corporation | 61.29 | 21.93 | 2.8 | 1.30% | 2.43 | 14.75% |
| HSIC | Henry Schein, Inc. | 56.35 | 15.82 | 3.56 | N/A | 2.31 | 14.77% |
| CERN | Cerner Corporation | 79.18 | 31.31 | 2.53 | N/A | 3.83 | 14.85% |
| CELG | Celgene Corporation | 55.25 | 29.99 | 1.84 | N/A | 5.11 | 15.06% |
| CA | CA Inc. | 20.44 | 13.43 | 1.52 | 0.80% | 2.02 | 15.48% |
| ERTS | Electronic Arts Inc. | 16.26 | N/A | -1.06 | N/A | 1.96 | 15.63% |
| VRTX | Vertex Pharmaceuticals Incorpor | 36.25 | N/A | -3.53 | N/A | 9.01 | 16.00% |
| KLAC | KLA-Tencor Corporation | 31.05 | 25.31 | 1.23 | 3.30% | 2.32 | 16.34% |
| STLD | Steel Dynamics, Inc. | 15.01 | 15.73 | 0.95 | 2.00% | 1.58 | 16.45% |
| WCRX | Warner Chilcott plc | 22.75 | 11.2 | 2.03 | N/A | 2.82 | 16.55% |
| LOGI | Logitech International S.A. | 15.39 | 22.57 | 0.68 | N/A | 2.68 | 16.86% |
| CEPH | Cephalon, Inc. | 62.26 | 12.48 | 4.99 | N/A | 2.09 | 17.36% |
| URBN | Urban Outfitters, Inc. | 34.11 | 22.19 | 1.54 | N/A | 4.26 | 18.85% |
| FWLT | Foster Wheeler AG. | 24.19 | 10.8 | 2.24 | N/A | 3.46 | 18.99% |
| FISV | Fiserv, Inc. | 53.56 | 17.16 | 3.12 | N/A | 2.57 | 19.55% |
| JBHT | J.B. Hunt Transport Services, I | 35.26 | 26.73 | 1.32 | 1.40% | 7.56 | 19.73% |
| CTAS | Cintas Corporation | 27.71 | 19.64 | 1.41 | 1.70% | 1.67 | 19.96% |
Nasdaq 100 Watch List
Below are the Nasdaq 100 companies that are within 20% of their respective 52-week low. Stocks that appear on our watch lists are not recommendations to buy. Instead, they are the starting point for doing your research and determining the best company to buy. Ideally, a stock that is purchased from this list is done after a considerable decline in the price and considerable due diligence.
| Name | Price | P/E | EPS | Yield | P/B | Pct from Yr Low | |
| Gilead Sciences, Inc. (GILD) | $38.37 | 12.31 | 3.12 | 0.00% | 4.71 | 0.95% | |
| Apollo Group, Inc. (APOL) | $54.41 | 13.61 | 4.00 | 0.00% | 6.23 | 3.07% | |
| QUALCOMM (QCOM) | $36.50 | 19.47 | 1.88 | 2.10% | 2.90 | 3.60% | |
| Ryanair Holdings plc (RYAAY) | $24.60 | 0.00 | 0.00 | 0.00% | 0.00 | 3.89% | |
| Activision (ATVI) | $10.56 | 124.24 | 0.09 | 1.40% | 1.22 | 6.34% | |
| Yahoo! Inc. (YHOO) | $15.29 | 27.40 | 0.56 | 0.00% | 1.81 | 9.45% | |
| Genzyme (GENZ) | $51.77 | 125.66 | 0.41 | 0.00% | 1.84 | 9.94% | |
| Symantec (SYMC) | $15.62 | 40.57 | 0.39 | 0.00% | 3.02 | 11.82% | |
| Electronic Arts (ERTS) | $17.63 | 0.00 | 0.00 | 0.00% | 2.29 | 12.29% | |
| Cephalon, Inc. (CEPH) | $59.38 | 11.84 | 5.01 | 0.00% | 1.90 | 13.00% | |
| Logitech (LOGI) | $14.63 | 40.41 | 0.36 | 0.00% | 2.65 | 14.03% | |
| Staples (SPLS) | $21.66 | 21.17 | 1.02 | 1.60% | 2.35 | 15.71% | |
| Amgen Inc. (AMGN) | $54.46 | 11.56 | 4.71 | 0.00% | 2.37 | 17.22% | |
| RIMM (RIMM) | $64.92 | 0.00 | 0.00 | 0.00% | 0.00 | 19.56% | |
| Cintas (CTAS) | $25.54 | 23.87 | 1.07 | 1.80% | 1.61 | 19.91% |
Watch List Summary
The stock that fell the most from last week's watch list was Ryanair Holdings (RYAAY) which fell -14.47% for the week. There were no stocks that had a gain from the previous week, however Genzyme (GENZ) lost the least at -2.80%.
| Company | Change from Last Week |
| Gilead Sciences, Inc. (GILD) | -3.49% |
| Apollo Group, Inc. (APOL) | -5.51% |
| QUALCOMM (QCOM) | -5.97% |
| Ryanair Holdings plc (RYAAY) | -14.47% |
| Activision (ATVI) | -4.92% |
| Yahoo! Inc. (YHOO) | -8.11% |
| Genzyme (GENZ) | -2.80% |
| Symantec (SYMC) | -7.36% |
In all, the Nasdaq 100 Watch List of last week lost -6.58% as compared to the Nasdaq 100 index which lost a total of -7.56%. As with our Dividend Achiever Watch List, the smaller losses and larger gains make the Watch Lists a good place to start investigating your next investment opportunities. Naturally, we expect that all investment decisions should be done with an eye for selectivity and a willingness to harbor a lot of patience.
New on our Nasdaq Watch List this week is Cintas (CTAS) which is also a Dividend Achiever. Cintas (CTAS) will be closely followed in the days to come since the company has increased its dividend every year for 27 years in a row. One caveat regarding the CTAS dividend is that it appears to be paid only once a year around the month of February. This means that poorly timed purchases can result in large losses without being offset by quarterly dividend payments.
Email our team here.
Nasdaq 100 Watch List
Below are the Nasdaq 100 companies that are within 21% of their respective 52-week low. Instead, they are the starting point for doing your research and determining the best company to buy. Ideally, a stock that is purchased from this list is done after a considerable decline in the price and extensive due diligence.
| Symbol | Name | Price | P/E | EPS | Yield | P/B | % from low |
| GILD | Gilead | 39.71 | 12.74 | 3.12 | 0 | 4.86 | 0.40% |
| APOL | Apollo | 57.41 | 14.36 | 4 | 0 | 6.53 | 8.75% |
| QCOM | QUALCOMM | 38.68 | 20.63 | 1.88 | 2.00% | 3.09 | 9.08% |
| ATVI | Activision | 11.08 | 130.35 | 0.09 | 1.40% | 1.31 | 11.58% |
| GENZ | Genzyme | 53.22 | 129.17 | 0.41 | 0 | 1.91 | 13.02% |
| RYAAY | Ryanair | 28.16 | 0 | 0 | 0 | 0 | 13.46% |
| YHOO | Yahoo! Inc. | 16.53 | 29.62 | 0.56 | 0 | 1.93 | 18.84% |
| SYMC | Symantec | 16.77 | 43.56 | 0.39 | 0 | 3.13 | 20.04% |
Watch List Summary
The best performing stock from last week's list was Qualcomm (QCOM) which rose 1.12%. The worst performing stock was Apollo Group (APOL) which declined 9.63%. Worth noting is the fact that Gilead Sciences (GILD) is moving very close to the October 10, 2008 adjust low price of $37.47. If GILD falls below the $37 level then the next support level is $27 according to Dow Theory.
This is the first time that Yahoo! (YHOO) has appeared on our watchlist. However, the most accurate low price should be the $8.95 low price that was attained in November 2008. I would not be surprised to see YHOO become the subject of a takeover if the price falls any further.
While YHOO's price has gone relatively nowhere in the last year, potential acquirers have an expensive stock price on their hands. This explains why Hewlett-Packard (HPQ) is buying Palm (PALM). From the period of one year ago, HPQ's stock price has risen over 40% while PALM's had fallen by over 60% in the same time frame. Stock prices are getting expensive and the only way to resolve this is by issuing more shares to raise capital or by acquiring another company.
Nasdaq 100 Watch List
Below are the Nasdaq 100 companies that are within 21% of the 52-week low.
| Symbol | Name | Price | P/E | EPS | Yield | P/B | % from Low |
| GILD | Gilead Sciences | 41.67 | 14.77 | 2.82 | 0 | 5.74 | 4.44% |
| QCOM | QUALCOMM | 38.25 | 30.7 | 1.25 | 1.90% | 3.08 | 7.87% |
| GENZ | Genzyme Corporation | 53.93 | 35 | 1.54 | 0 | 1.85 | 14.53% |
| ATVI | Activision Blizzard | 11.6 | 136.47 | 0.09 | 1.30% | 1.35 | 16.82% |
| RYAAY | Ryanair Holdings | 29.19 | N/A | - | 0 | 0 | 17.61% |
| APOL | Apollo Group, Inc. | 63.53 | 15.89 | 4 | 0 | 7.34 | 20.34% |
This list is strictly for the purpose of researching whether or not the companies have viable business models or are about to go out of business. These companies are deemed highly speculative unless otherwise noted.
Email our team here.
Qualcomm (QCOM) Dropped After Earnings
Qualcomm (QCOM) tanked 7% today after the company announced their fiscal 2Q earning. The "reason" for the move, despite beating analyst expectations, is because of lower than estimated guidance for the upcoming quarter.
Let's take a look at the actual figures to see if we can make sense of this situation. Net income for 2Q10 came in at $0.59 vs. consensus of $0.56. That's 5% above consensus view. Guidance for 3Q10 is between $0.51-0.55, take the average and that is $0.53. The Wall Street expected $0.55. Given the company beat expectations by 5% and offered guidance that is 3% lower than expected ($0.53 vs. $0.55), QCOM shares fell 7%. That doesn't make sense to me.
In light of all this, we spoke about Qualcomm in late March 2010, which was only a month back. The action for this stock has been very volatile. With shares dropping 14% after reaffirming guidance to rising 8% after boosting forecast. Volatility, in my view, is great for value-oriented investors who are looking to acquire shares at a discount.
At the end of our March 25th posting, we said "we'd rather not chase it at this point" and we did just that, we stayed on the sideline. But now that Qualcomm is back within 20% of the 52-week low (at little less than $40), we are excited about the shares once again. Our initial model shows a good price to enter at $39 and a bargain price of $25.
We believe that you can start researching Qualcomm's viability as a company. With the recent announcement of a dividend increase of 12% and a $3 billion stock buyback program, we like the prospects of this company. – Art
Related:
Email our team here.
Nasdaq 100 Watch List
Below are the Nasdaq 100 companies that are within 20% of the 52-week low. Instead, they are the starting point for doing your research and determining the best company to buy. Ideally, a stock that is purchased from this list is done after a considerable decline in the price and extensive due diligence.
| Symbol | Name | Trade | P/E | EPS (ttm) | Yield | P/B | % from Low |
| GILD | Gilead | 45.7975 | 16.2 | 2.822 | 0 | 6.48 | 10.86% |
| GENZ | Genzyme | 52.8 | 34.3 | 1.54 | 0 | 1.81 | 12.13% |
| SRCL | Stericycle | 54.58 | 27 | 2.03 | 0 | 5.44 | 18.76% |
| QCOM | QUALCOMM | 42.17 | 33.8 | 1.25 | 1.60% | 3.32 | 18.92% |
| APOL | Apollo Group | 63.14 | 15.8 | 4 | 0 | 7.13 | 19.61% |
| RYAAY | Ryanair | 29.75 | N/A | - | 0 | N/A | 19.86% |
This list is strictly for the purpose of researching whether or not the companies have viable business models or are about to go out of business. These companies are deemed highly speculative unless otherwise noted.
Email our team here.
Nasdaq 100 Watch List
Below are the Nasdaq 100 companies that are within 20% of the 52-week low.
| Symbol | Name | Price | P/E | EPS (ttm) | Yield | P/B | % from Yr Low |
| GILD | Gilead Sciences | 45.34 | 16.1 | 2.82 | 0 | 6.5 | 9.76% |
| GENZ | Genzyme Corp. | 53 | 34.4 | 1.54 | 0 | 1.8 | 12.55% |
| APOL | Apollo Group | 61.28 | 14.7 | 4.16 | 0 | 6.7 | 16.08% |
| QCOM | QUALCOMM | 41.83 | 33.6 | 1.246 | 1.60% | 3.3 | 17.96% |
| FSLR | First Solar, Inc. | 116.5 | 15.5 | 7.53 | 0 | 3.6 | 18.02% |
| SRCL | Stericycle, Inc. | 54.5 | 26.9 | 2.03 | 0 | 5.5 | 18.58% |
This list is strictly for the purpose of researching whether or not the companies have viable business models or are about to go out of business. These companies are deemed highly speculative unless otherwise noted.
Email our team here.
Qualcomm (QCOM) Boosts Forecast
Qualcomm (QCOM) rose as high as 8% today after boosting their forecast. The strangest thing is that it wasn't long ago (1/27/10) that they reaffirmed guidance that was below the street expectation which tanked the stock by 14% on the following day. Then on 2/26/10, our team point to the obvious fact that QCOM and MON should be on your radar after appearing on our daily watch list. Five days after (3/1/10), the company announced a dividend increase of 12% plus a $3 billion stock repurchase program. The stock was at $36.
We reiterated QCOM in the Research Request section of the site. Although the stock is still within 20% of the 52-week low, we'd rather not chase it at this point.
Email our team here.