I strongly think that wall street is doomed. It is highly possible that the companies may go private. Financing paradigms will shift. Wall Street will be obsolete to find money. A parallel universe will be built. Look at this company. It is trashed like Dell. It has zillions of patents. The US government is not standing behind the companies. 4000 people laid off. The gov is reporting 40,000 hired at MacDonalds. This is the problem. 500 million dollars gone with the 4000 people. Why China and Korea want to steal the patents use th parts without paying. What gives the phone real value. Its glass, frame? Of course snapdragon. What is wrong asking a royalty at the final sale price of the phone. They want it cheaper than two gallons of gas.
Everyday, if yuu google snapdragon 820, instead of qcom, you see one by one all the major phones are releasing news that they are coming up with Snapdragon 820. Samsung will be deflated if they pressure QCOM. QCOM in fact may take a decision not to sell it to samsiung as it happened with snapdragon 810 last year tp protest their armtwisting using their own government. QCOM is not defenseless. The real hammer will knocked on samsungs head by the other phone companies, especially Chinese.
e company’s business.
The firm models a sum-of-the part valuation of $65/share for Qualcomm.
Qualcomm shares plummeted more than 9.4 percent on Wednesday following news of a new Korean antitrust probe of the company. The decline leaves shares down 33.9 percent in 2015, but Bank of America analyst Tal Liana sees plenty of value to the stock at current levels.
Korea Ruling Is A Non-Factor
According to Liana, Qualcomm investors have nothing to fear from the Korean probe. He points out that, regardless of the outcome of the probe, the Korean market accounts for only about 0.6 percent of the company’s global unit market. More importantly, the US is not currently pursuing any antitrust actions against Qualcomm.
Qualcomm has long been rumored to potentially split its Qualcomm Technology Licensing (QTL) business from its Qualcomm CDMA Technologies (QCT) business. Liana feels that breaking down the valuations of both segments reveals just how much value is currently stored in Qualcomm’s stock.
Bank of America’s valuation model, which includes an assumption that royalty rates over the next decade will decline from 3.1 percent to 2.2 percent, values QTL at $35-39 per share.
Using Intel Corporation
’s PE of 12x and Bank of America’s $1.50 per share annual earnings estimate for QCT, the firm derived a sum-of-the-parts valuation for Qualcomm of $65.
“We believe fair value is even higher and maintain our $75 PO,” Liana added.
Buy The Dips
In addition to an attractive valuation, Bank of America sees the potential for new deals in China, continued cost-cutting and strong traction for the company’s SD820 chip as potential positive catalysts ahead for Qualcomm. The firm maintains its Buy rating and believes investors should be loading up after the 2015 dip.
Read more: http://www.benzinga.com/analyst-ratings/analyst-color/15/11/5991964/does-qualcomms-break-up-value-hint-at-massive-upside#ixzz3rxZFO1uw
Tomorrow, the Fed is going to make a decision on the resubmitted stress test statement. Please check the " bac, stress test news" on google. They know it is going to be okay and they are releasing frivolous bad news. In fact trading revenue is the smallest section of income for BAC than it is for JPM. BAC is down more than JPM. The cots cutting is everywhere. My closest bank of america branch was closed. Customers are increasing more than any other bank. easy to tell that in Tampa. So in summary, tomorrow big news is the stress test which gives us so much stress.
I am expecting based on the charts pattern in the past 6 months, an opening on Monday with a big gap up.
You need 32 mil cash to operate. You have 8 mil in cash. You are a 1 billion dollar company how is that possible? I need to go back to Business school. This is beyond me.
Check the chart. 10 year goes up Loco is flat or down. 120 mil debt. Maybe more coming. Insider sold in November it tanked all the way to January. There is something going on, the only people who knows nothing are day traders.
Chicken prices high ( bird flu), opening new restaurants, remodeling costs, 120 mil plus debt. They are forgetting that these expenses would not be there if the model in place not working
why not what happened to dell. Taking private is not for scaring th people. It is a good thing. If a company is not recognized and appreciated, then the private investor is always an option.
when you short 4.5 millions shares , then you have to hire guys like you no question.
totally agree with your explanation. however how come ceo does not own a single share of a company he manages? what does that tell you as an investor? If he does not own 1000 shares why would i buy then? The company is worth owning the shares. I am on the same page with you. then the only explanation left for unloading is that his departure date is soon. that is what happened to the compaanies I had worked at