Referencing a 56-year old song for the title of an article about a tech company is admittedly bizarre, but then so too is Qualcomm's (NASDAQ:QCOM)
situation. The acknowledged leader in handset baseband and app
processors, the stock is down about 25% over the past year, as weaker
handset sales momentum and weaker margins have really started to bite
hard.
Qualcomm is in the enviable situation of having a pretty
darn good business in hand, as well as ample cash (and cash flow) to
fund complementary or expansionary M&A. The question is whether the
company has the courage (and/or vision) to risk the short-term wrath of
investors in order to improve the long-term outlook. Although the
company's valuation does stand out in an otherwise expensive crowd, I'm
not so proud that I won't admit that I really don't know what to do
about the shares.
Read more here:
How Do You Solve A Problem Like Qualcomm?
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