I caught this segment on Fast Money, and it got to take a closer look at QCOM.
The thesis of the video was that QCOM will benefit from the iPhone 5. That is a winner on its own, but the more I look into the production numbers of the iPhone 4 and 5, the wider my eyes become. The article itself is very good news for Apple, and the ramp-up of iPhone 5 will be good for QCOM (and sets the trend for the iPhone 5). What I think is more relevant to the iPhone 5 build is the fact that China Mobile is in talks to bring the phone to their network, which greatly expands the reach on the iPhone 5. QCOM will be a beneficiary to this.
Historically, looking at QCOM's current trailing PE (high 18) over the last two years, it is near its low. Its minimum was around 16-17.
Basically, QCOM is a company (and stock) with the wind at its back, while trading at the low end of its multiple range. Not to mention, it is sitting on longer-term support. (Although the trends are shot to hell, like the rest of the market.)
QCOM looks really interesting at current levels. I will probably make an initial entry, and keep a closer eye on QCOM in general.
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