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Sunday, October 30, 2011

Still no power, but QCOM looks bright

I have not had power since 2pm on Sat. Sucks the big one. I sit here wondering when the fuck will the Smart Grid get deployed to avoid these types of outages. With the current sensor technology out there, and grid capabilities, the Electrical grid is ridiculously obsolete. (This was written on my iPhone. At least Apple knows how to do things right.)

Anyway, I wanted to point out a few key aspects that make QCOM interesting going into the Nov 2nd report.

1. 3G abortion in china is increasing and expected to reach 125M by the end of the year.

2. QCOM earns about $14-15 per iPhone 4S.

The only way Apple could handle such an awesome demand for this phone was to start producing the phone early this quarter, which would mean a benefit to QCOM should be seen this quarter.

QCOM is also very well positioned in the rapidly expanding LTE space. Depending on LTE growth, a higher multiple maybe justified.

Fundamentally, QCOM looks like an interesting play into earnings.

Technically, via the weekly, it looks like it wants a reason to push upward. It's breaching SMAs that were recently resistance.

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