ahh, First thank you.
re: The end of day 688,300 trade. It is likely that this big block was a pension fund buy which needed an arrangement of participating MMs to supply. <snip> Why this interpretation has significance is that price action has exhausted fundamental expectations and the illiquidity above is indicative of that attitude.
In order to buy into your thinking, ones has to say that the 688,300 trade was dump money and way late to the party, if in fact it was one party doing the buying. Also, uses of the word of "exhausted" would seem to be misplaced we are talking about one trade near the end of the day that was dumb money if you buy into your take. I rather use that word "exhausted" when I see stock action that is high vol. and no price moment or in blow off.
You can also look at it this way. Some player feels a $270 million bet is worth it, even in a market that is short term extended as the Naz. is.
re: It suggests the stock has internally peaked, but often price will go to a nominal new high over coming months, but won't make any further substantial advance until a significant correction has taken place or an improvement in fundamentals occurs.
The key phase above is "unexpected improvement in fundamentals"
We have that coming, the handset div. sale. Throw in the split
your getting significant support. Granted I am nowhere as enthusiastic as the bulk of the poster on the Q thread, but this is a short term concern. Until I see a change in the story, or market at large, I'm holding my QCOM shares. The key for me is the handset div. sale, more so then the split. The deal has to be good, and it has to happen soon, since royalties are going to be the name of the game for the next three quarters until we see some actual deployment of HDR out of Korea, not to mention all the other unknowns that will sure to come out of the fertile minds in San Diego.
Greg |
