julie et al: what about qualcomm?
qcom is looking very interesting to me at these prices and i have been researching this weekend, here is the conclusions i have come up with, would appreciate anyone else's thought pro or con
1. no matter if it is cdma2000 or wcdma- any flavor of cdma gets qualcom the same royalty about 4.5%
2. qcoms revenue right now is 60% chips and 40% royalty, while their net income is much more weighted towards royalty
3. cdma makes the most efficient use of spectrum and bandwidth, with millions of wireless internet appliances coming out over the next few years, space is going to be at a premium, cdma is the most efficient profitable way to go
so why is qualcom being sold off and why do some people still have $200-$250 price targets? this is either the greatest sale in history or the party is over? I think this is a good entry on qualcom, great support at $55, with what i understand of their technology, long term, they cant loose, all they have to do is enforce their patents, wireless keeps exploding, they win, so is anyone else loading up on qcom at these levels?
on the negative side, while the market will probaly move higher this week, the vix broke 22 friday which is serious warning signal, we may go higher, but we are not going to bust out here, i would keep my finger on the sell trigger and keep selling into strength imo
would appreciate anyone else's thoughts here as i make my plans for this week
cheers |
