LOL. Hopefully things have pretty much bottomed out in view of the bump after 1:40 EDT today.
Is the glass half empty or half full? The "half empty" folks have had their way recently. According to what I have heard, concerns over low gross margins was the big thing the naysayers emphasized, but the thread has discussed that, particularly in regard to the "conference call." Jacobs pointed out that the initial costs of infrastructure is high but will go down. Second, I think the ligitation is scaring folks with "uncertainty." I do not expect much of anything from the hearing in federal court tomorrow. It's only a temporary injunction hearing, that is, for a preliminary injunction until the trial. I believe both sides are asking for injunctions, so I would anticipate that the presentation of the evidence will not conclude tomorrow, anyway, on such a complicated issue. The predilection is to deny injunctions because the prospect of reversal on appeal is much less than when a temporary injunction is granted. What is a concern is the cost of the litigation, which is having an adverse impact on Qualcomm's G&A expense, but the company has no choice. That won't change anytime soon.
The momentum players seem to control the market these days, and they can switch on and off a stock or whole industry like a lightswitch. An increase in gross margins over the next few quarters would be a big lift. If you look back at any of your past, long-term winners that you have owned for 6 or 8 years, I bet you will see the same kinds of wild swings. If you had panicked and sold on a downturn, you would have missed out on a ten-fold to fourteen-fold price increase and stabilization of the stock price as the company matures. Take a bicarb and have faith in the fundamental prospects! |
