A Blog About My Life’s Lessons

I purchased a few shares of Qualcomm stock on Friday at the opening bell for $45.  I bought it for a number of reason, which I will explain later.  First, I want to share with you the good timing.  The QCOM stock just happened to get upgraded that same morning by Oppenheimer & Co. analyst Ittai Kidron. He raised his price target to $56 from $52 and kept and “Outperform” rating. The new target implies he expects the stock to rise about 24 percent above Thursday’s $45 close.  The stock jumped 4.22% or $1.90 that same day. Not bad for owning the stock one day.

I felt it was the right time to buy the stock because:

• Their mobile video play. They are driving a standard called MediaFLO, through a wholly owned subsidiary called MediaFLO USA. The MediaFLO system transmits data on a frequency separate from the frequencies used by current cellular networks. In the USA, the MediaFLO system will use frequency spectrum 716-722MHz, which was previously allocated to UHF TV Channel 55. It is a competitor to the Korean T-DMB standard and the European DVB-H standard. However they are not being too arrogant.  Qualcomm is making chips that runs both MediaFLO as well as other standards such as ISDB-T On Single Chip.
• Stand to benefit from the strong growth in the Smartphone market where they sell chips. But they are looking to create their own smartphones, at least in India.
• They have a solid balance sheet with plenty of growth potential.

These are just a few of the reasons I bought Qualcomm.