I think when it comes to the fundamentals, QCOM has going for it the fact that wireless is the future, and until proven otherwise, this is the statement that makes everyone hold on regardless of the price.
QCOM's market can be extrapolated, as Buzz Lightyear would say, "going to infinity and beyond" vs. DELL is just a commodity distribution channel with no real proprietary technology or processes. I have four cell phones in the house, and I can testify that the CDMA phone produces the best sound for sure...
BUT the part that I'm interested in is how investors who study fundamentals discover these stocks, and what was the trigger for them to buy. For example, you might be reading about some development for a while, and think, gee, these are good companies, etc., but how does on go about translating that to the act of putting in an order today, vs. last week, last month or next week or next month? I personally think that price action causes the urgency to get in but I might be wrong. For example, we know what triggers investors to sell: Bad news on the fundamentals, such as AAPL being cut in half last week. The earnings warning crystallized things is a whole bunch of people's minds and caused them to all sell in one day, but does it work in reverse in the buying process?
For me, it's eternally fascinating how one comes to make a singular decision with fundamentals vs. price action, where there's always a clear trigger point (well, at least to me).
T. |
