on topic:
The stock crossed the 50D moving average, easier than I thought it would. We are now back to the area of the April lows, the 10-15 area where we drifted from mid-June to mid-September. We may go back to drifting aimlessly in that range for months. I doubt we get above 16, the early August high.
Qualcomm: It's always been a volatile stock; I don't think it's any more manipulated than anything else. Everything has plunged, then bounced hard. NTAP has almost doubled already, off its lows. The SOX has rallied 38% off its lows. Like NTAP, the SOX is back to where it was at the April bottom. You could have gone to sleep in early April, woken up today, looked at your portfolio, and said: "nothing's changed; I guess nothing happened in the last 6 months".
The Value Investors look at QCOM's P/S ratio, and all the uncertainties of the future income stream caused by the uncertain rate of adoption of 3G, and the certainty of a coming recession, and say, "an obvious short". The Tech Enthusiast looks at QCOM's patents, and the (potential) size of the wireless market in all its facets, and makes it a core holding. This stock is either hated or loved, no middle ground. FWIW, I have 20% of my money in QCOM, at an average price of 42. Used this dip to $-cost average in at 50, 45, and 40, then sell the highest-cost lot at 50, on the recent rebound. I wouldn't be surprised to see 65 (selling opportunity) or 35 (buying opportunity) in the next month. Or both. |
