Taichi, a better inflation hedge than art is productive assets, not gold, oil, etc which just sit there. The Q is the sort of place to be. No, not Compaq [damn them!]. Though I've got some of the technical guff on Capstone's turbine and it is an admirable little gadget.
Anyway, I was contemplating zero sum algorithm wars on stock prices and conclude that Qualcomm is about to do a big, fat, ramp up.
Because:
1 All the good things technically and marketally are going great, with new MSM 2310 making Motorola's handset efforts look a joke, PalmPilot, Unwired Planet and all the big list of great things from cdma2000 to Eudora Pro and Globalstar looking great. So the fundamentals are there.
2 Check out the trading volumes. Now down to several hundred thousand shares traded per day. That's a long time low, with more shares on issue than ever. Not many buyers and not many sellers = tension and lack of interest have built up, waiting for a break. Look at several people, like Dougjn etc bailed out and going to catch it after the first few points rise! Fat chance.
3 Check out the wavy graph of the price since IPO. You can see the waves rolling across the graph, from the big one when it hit, pre-split, $86 across to the latest trough, which has been lasting 6 months and more. Each wave is smaller than the previous ones because each excitement is less dramatic in the overall context. When it did that first huge run to $86, it was dramatic because it came from nowhere and suddenly people thought it would rule the airwaves. Each excitement afterwards has been important, but not as dramatic because it is becoming a very big company with diverse interests, many analysts, speculators and each news item, like the MSM2310 is less important in the overall context.
So coming up to the profit announcement, and we can be sure they don't want any more ugly surprises, so the results will be treated conservatively [as always], with the Korean losses well-baked, no surprises and a solid foundation going into the last quarter.
When Qualcomm rises, it does it quickly. And goes higher than all previous highs, so maybe even $90 is in order. Then doesn't fall as far as the old lows [now $47 as a foundation]. All this dependent of course on continuing good results, IPR negotiations over cdma2000, Spinco success, Globalstar success, MSM2310, Eudora, Anita[TM], Omnitracs [I bet most of you hardly notice that anymore], infrastructure sales and overall market development.
So there you are, guaranteed, double your money back, don't do due diligence or think for yourself - that's why you're reading the screen, trust me and buy Qualcomm as soon as you can. I've got my money where my mouth is = half my money in Qualcomm with my last buy at $52. This is not hype, it is genuine, foolproof, technical analysis [often called TA].
Heck, when living in London in 1986 I went a few times with a colleague, who was a member, to the Association of Professional Technical Analysts meetings, which I nicknamed "The Head and Shoulders Club", which only partly offended my friend. I have to admit that although I raved on about "algorithm wars" in a recent post as though these people are genius types with PhDs in maths, these people were definitely not of that ilk - but they did have a fun classification system for various charts. They were real-life fund managers in charge of billions of pounds. I could ever only remember the "head and shoulders" graph. I suppose because it was a scary one! But it was interesting to understand those people and how they managed stocks. So you can see I'm well-qualified to give a buy warning.
Anyway, there you are Dougjn and all.
You have been warned!
Mqurice
[I reckon those who buy in the next 5 days should pay me 5% of their profits - a nice round IPR value] |
