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Technology Stocks : The New QUALCOMM - Coming Into Buy Range
QCOM 178.63-1.3%Oct 29 3:59 PM EDT
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From: Lance Bredvold2/1/2024 4:31:31 PM
1 Recommendation

Recommended By
SirWalterRalegh

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Q1 results are in and I find them quite satisfactory. By my favored methodology EPS continues to grow over 12% CAGR for 20 years and that excludes the amazing very early years in the 1990's. Add on about 2% in dividends.
I see 100 posts ahead of me on the moderated thread and apparently something in the conference call caused a 5% drop in price today. I would not regard us in buy range at this time and have sold $155 and $165 calls on about 10% of my shares getting $13 and $14 for them. Should they be exercised I would have a CAGR of about 12% plus the same 2% dividend I received for two years after paying the most I ever did for shares after the last runup. I picked them up in 9/22 having sold 160 puts for $21.50 giving me a cost of $138.50. I also have purchased other shares which would show a much higher return over 1 to 2 years for which I paid from $104 to $130.
I remain optimistic about my potential gains in QCOM since such a consistent growth rate will easily justify the PE of about 20 which we will enjoy up to a price of $200. My methodology gets my EPS in 2022 to $8.90and at the growth rate we've seen since 2004 or 5 should be near $10 for 2023 and $11 in 2024. The main reason I sold those calls was just that I'm overexposed to QCOM at about 16% of my portfolio when 10% is the maximum I consider prudent. I sleep well with a PE of 10 to 20. Higher than that would cause me concern.
Only shares in my Roth account can be sold tax efficiently and those with a cost basis of $2.11 to $130 ($138.50 if not called) are either given to charity and left for heirs.
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