QCOM share price going nowhere? There has been a very large drop in cellphone sales and that [to most people] would translate into "Qualcomm is in trouble". The reports don't normally differentiate between GSM/GPRS/EDGE cellphones and supersonic CDMA-powered cyberphones which are selling like hot cakes and will sell faster still over the years, recession, depression, or not.
Also, "sell on the news" is a traditional mantra. The news is in, BRCM settled, now there isn't much news coming along [other than bad news about weak cellphone sales].
People and companies who have to sell something to raise cash, perhaps pick on QCOM where they don't show losses to avoid selling other things where they do.
Not to mention, "Sell in May and go away".
Plus Apple is probably seen as a threat - "Omigod, look what they did with the iPhone. Imagine what they'll do with their own ASICs".
Plus QCOM seems to just go through the money by the $billion these days, sticking to the sides with salaries and stock options, falling and being throw over-board, not dropping to the bottom line.
There was a time when $10 million was considered serious money in Qualcomm and even $1 million garnered some attention. Now, like governments starting bidding at $1 trillion, QCOM management isn't much interested in anything less than $1 billion. "Big shot" syndrome is easy to acquire and gets very expensive very quickly.
Profits haven't gone far and neither have dividends, so it makes sense that the share price would follow. The 5 year share price isn't very exciting. finance.yahoo.com It's not like the roaring 90s.
Mqurice |
