So all this talk of a buyout makes alot of sence but is there any fact behind it? I just want to know so i know what to expect. i got in this stock at 45 and could sell now for nice profits but even the thought of a buyout could cause a few points on the upside for me.
if no co. has expressed interest and/or it is simply a rumor, what is ur personal opinion as to the chances for a buyout?
No one on this board has given any facts that support even the idea that a buyout of QCOM has been discussed anywhere. Even the rumor that Jacobs was talking to Ericsson does not necessarily support the buyout theory, since, as many have on this thread have already articulated, there are many reasons for the two to talk...and soon!
With QCOM investors as enthusiastic about the stock as they are, and with upward price pressure right now, a buyout seems pretty unrealistic in the short term. Lord knows that Jacobs and company are not going to want to sell a company that they view to be ideally placed in what is sure to be the hottest sector over the next 5+ years. That said, over the long term, we are bound to see consolidation (as in every other industry). My guess is that we are still a little ways off (1 - 2 years out??) from major consolidations of companies the size of the Q. Of course, I could be wrong (let's hope so), but my bet is on fundamentals, not buyouts...
The price that LU would pay can be $80 to $90 a share. It is high enough to get the agreement of QCOM management, and the LU stock goes up faster than it can be printed. And QCOM net income with LUs PE would raise the price of LU (adding in QCOM's net income)would be enough to get QCOM free.
This is not a rumor. It is only my personal opinion. But it makes the point that QCOM can get a tender offer at the close of business tomorrow. Giving the trend in telecom consolidations, I think it is more likely than not that QCOM will be taken out.
Do not even think that LU has not reached the same conclusion that I have reached. LU is on record as looking for acquisitions. I will make my point even stronger - LU must make acquisitions in order to keep its stock moving up. The higher it goes, the more acquisitions it can make. And LU wants to dominate the telecom manufacturing industry and the network industry. They are doing just that.
Buyout rumors are a sure hint that the price will swing greater up, and go down below it normal lows. It is just an effort to bouy up this stinker of a company. I am back out at 55, and back in half about 46. I'll save the other half to get in @ 34 later this summer.
Jerky why fight the trend in a bull market. I only see a correction helping the shorts. Read Greg Powers contributions on Silicon Investor. Type in Q C O M and read some facts that may enlighten you. Why do you persistantly knock this stock? I believe it could be linked to a fear of success. Didn't you short Lucent from the IPO. Does Radioshack offer medical/dental? Are those Q phones starting to hurt your back as they are moving off the shelves and you have to continually restock? I hope your back heals soon and you get your old job back as a postal worker. I hear they are taking back psychotic underachievers so you may be in luck. Best Reguards, Uncle Bum