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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 159.42-1.2%Jan 16 9:30 AM EST

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To: Art Bechhoefer who wrote (58803)1/19/2007 1:11:17 PM
From: A.J. Mullen  Read Replies (2) of 197254
 
if the Broadcom case is lost and Qcom stock drops 20%, what will you do?

Drive to the nearest bridge and jump? No. It's too early to guess or even develop a plan, since we won't know until later what the jury believed to be the weak points or strong points, and whether the judge made any errors instructing the jury, etc., etc. If the verdict goes against QCOM, it may or may not be a good case for appeal, depending on the nature of the verdict.


You only answered part of my question. What about if the case was lost and the share price was more or less unchanged? Presumably, you'd sell if you think that a 20% drop in price would be a reasonable reaction to the same news?

Waiting for more news avoids the question. Those trading don't have that information. By the time you had the information the price would have changed.

I'd buy in the unlikely event of a 20% drop because I would see it as an irrational reaction to a minor setback. The case is about $8.3 million damages Qcom claims. A 20% drop would be about $13B! That does not seem commensurate to me.
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