JimWillie. On TA and 120 level. It shouldn't really matter to me because I am holding long on fundamentals and not trading. Also, the stock is somewhat news driven, option driven and possibly October effect driven. I wold expect an upward march with a likely dip the week of the Friday Oct 18 options expiration (a boat load of low strike oftions expire). The stock should take some direction a week or so prior to the 11/3 earnings report date. If and when the sale/JV of the subscriber division is announced, it may take some upward direction, especially if at appears that this will hasten/enable adoption of CDMA in Europe or at AT&T.
If NASDQ falls in Oct, then QCOM will likely see its pos movement stalled.
As far as price acton, I guess, absent the above effects, I see a fairly steady rise to $200, followed by a 30 point dip back toward 180/190.
But, I remind you that Warren Buffet purchases stocks based on fundamentals and pays little attention to market price action as long as the fundamentals remain solid.
Also, because you have read the Gorrila Game, I remind you that they advise that, for a gorilla stock (can we agree on this) fundamentals change slowly so you need only review the stock quarterly when earnings come out.
I am interested in dips though, because my available margin keeps increasing and I prefer to invest in Q on a dip--knowing though that if I miss the dip, it won't make too much difference in the long run if the stock continuse to grow at 50%/yr. The real mistake would be to become so facinated by TA and price action that you fail to invest at all.
Also, a more interesting question for you so spend your time on would be that of whether leaps are still a good investment. This is, how long can Q achieve this rapid growth rate and what are the limits on its growth. As I said many times, I think that this is a share accumulation stock--not a trading stock. Thus we do better if we take the eagles eye view. Energy spent watching the grass wave in the breeze is essentially wasted for me, although it is fun and exciting to follow the play-by-play and by doing so make myself a part of this powerful CDMA adoption drama.
JohnG |
