Are You There, Qualcomm?
Qualcomm (QCOM) is engaged in the design, manufacture of digital communications products and services based on code division multiple access (CDMA), Orthogonal Frequency Division Multiplexing (OFDMA) and other technologies. The company operates in four segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); Qualcomm Wireless & Internet (QWI), and Qualcomm Strategic Initiatives (QSI). The Company develops and supplies integrated circuits and system software based on CDMA, OFDMA and other technologies for uses in voice and data communications, networking, application processing, multimedia and global positioning system products.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'QCOM'" symbolprices="72" div_align="right"]
We first purchased Qualcomm almost 24 months ago. It has fallen out of favour of late as continued issues in China force retrenchment.
We like the balance sheet and the financial metrics, however, we are not inspired by the outlook for the next 3 years. The consensus estimates point to very low growth in earnings for 3 years. In addition the recent low of $62.26, is a sign of a lack of support by investors that may resurface again. We prefer to stand aside and look for better opportunities. We are exiting to focus on better opportunities with less downside risk and locking in a 21% gain.
EXIT QUALCOMM AT $71.95 (QCOM, $USD 72.03) FULL POSITION
TOTAL RETURN (no dividends): +21.0%
