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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (2615)	12/15/2012 11:58:01 AM
From: E_K_S	2 Recommendations Read Replies (1) \| Respond to of 4720

You are correct about QCOM after I reviewed their products and services offerings. My take regarding Buffet was he generally does not invest in anything "High Tech" and therefore I concluded the same would apply to QCOM. Perhaps that view has changed with his recent investments in IBM and INTC. That said, I think QCOM is/could be a good value candidate company. I did not realize their forward PE was so low around 12. It has been a long time since I looked at the company and their product lines too. The biggest thing that attracted me to the company recently is the way they are setting up their next generation processors w/ their built in multi frequency modems that will service almost every wireless system in the world! Specifically, the 2.6ghz spectrum that China Mobile is/will be building throughout their country. Qualcomm Aims for Everything with S4 Processor Family Qualcomm announced this week two new budget Snapdragon S4 mobile processors: the MSM8225Q with an embedded single-mode UMTS 3G modem and the MSM8625Q with an embedded dual-mode CDMA and UMTS modem.What’s unique about the Snapdragon S4 processor, particularly the MSM8960, is that the LTE modem baseband and application processor are combined into a single chip. Sprint Buying Clearwire? . . . and/or a Softband/Sprint and a Dish deal (w/ the Dish initiative largely funded by Google). It's a developing and "event changing" partnership (Note: Qualcom is in the middle of the whole thing with their all-in-one multi-frequecency (including the 2.6GHZ TD-LTE baseband modem) dual core/quad core low power processor(s).) China Mobile, Clearwire, and Softbank would use all of the 2.6 GHz band for TD-LTE. The Global TD-LTE Initiative (GTI) announced that China Mobile, the world’s largest mobile network, Softbank Japan, the largest current TD-LTE provider, and Clearwire, the major proponent of TD-LTE in the United States, are working together to devote nearly the entire 200 MHz band to TD-LTE (band 41), and to make their infrastructure and consumer equipment interoperable and compatible. Notice how prevalent the 2.5GHz has become worldwide. . Qualcomm LTE chipsets supporting the Band 41 in combination with other LTE FDD/TDD bands will be available soon. Leading TDD operators, include China Mobile, India’s Bharti Airtel, South Korea’s KT, Japan’s SoftBank, the US ClearWire, UK Broadband and P1. Just look at the global reach Qualcom will have in this next generation 2.6ghz spectrum. The number of devises that can be connected using LTE TDD technology increases exponentially. A qualcom chipset could be in all of these devises. I really do not think the historical price chart for QCOM reflects what the next 36 months has in store for Qualcom. It's possible that a run 50% higher to $90.00/share could be achieved. Maybe the market does not see these TD-LTE network(s) deals getting done. Just look at the players now talking: China Mobile, Qualcomm, Google, T, Sprint, DISHNET, Comcast and others. Many of these players missed the CDMA and/or 3G boat and are looking to leapfrog their competition into this new Technology. So what is the best way to invest in this new disruptive technology. Maybe Google, one or more of the cable companies that own part of this new spectrum (ie. Comcast, T, DISHNET), the chip designer/manufacturer(s) Qualcomm and/or INTC and/or the devise manufacturer(s) AAPL, Samsung. Who is selling at the lowest forward PE and can maintain the highest margins? If you want a pure play in China, I think QCOM moves near the top of the list. It was in this context I made my comment to you about Qualcomm. FWIW, I noticed that BERKSHIRE HATHAWAY INC has no position in QCOM, perhaps they should. He did up his IBM position by 1.3%. EKS