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Qualcomm: Offers Strong Value Buy Opportunity On Current Pullback
- QCOM has dropped 9.2% since April. At the same time, the technology sector (XLK) has grown by 7.2%. A differential in the QCOM/XLK pair equal of 16.4%.
- The negativity has been primarily due to [resolvable] concerns at Qualcomm's royalty-dependent QTL division - smartphone vendors in China allegedly under-reporting unit sales.
- With solid fundamentals (clean balance sheet, $32 billion cash, market growth, healthy ROE) and China issues likely priced in, QCOM presents a solid value opportunity to buy into the pullback.
Pricing In Q4 - Apple Already Trading At 20% Premium Above Fundamental Value Ratios
- Key value ratios are presently above average across the board - including price/sales, price/EBIT, price/free-cash-flow, price/earnings, and price/book, ranging from between 19.9% and 29.6%.
- The ratio spikes suggest Q4 performance partially/fully priced in - Apple continues to grow, and will likely do so, but in a more constant manner - not exponential.
- The stock price could correct before resuming uptrend - as this could be evidence of shifting investor optimism - a tendency towards longer-term acceptance of these higher values.
5 Technology Stocks With Low Price To Free-Cash-Flow And Strong Sales And Operating Margin Growth
- Weekly stock screen & report on the most potentially undervalued companies within the 'technology' sector, combining both fundamental sales/margin growth and value metrics.
- The objective is to combine both 'quality' growth fundamentals, coupled with a value ranking (sort-order) of qualifying companies by lowest price/free-cash-flow ratio (most potentially undervalued).
- Price/Free-Cash-Flow is considered a more robust measure of company value (stock price relative to the actual FCF return from business-centric operations), compared to the 'lesser revealing' generic P/E ratio.
- Additional due-diligence is applied to only include those companies within the screen, which are not overly-leveraged or carry excessive debt.
- Rimage Corporation: On the Rise With Extensive Free Cash Flow Reserve
- 5 Undervalued Stocks Offering Strong Free Cash Flow Yields vs. the S&P
- Computer Sciences: Strong FCF Yield Backed by Strong Insider Buying
- Kulicke & Soffa Industries Looks Good With a 13.9% Free Cash Flow Yield and a Low PEG
- Undervalued Tech Stock Vishay Intertechnology Boasts 18.8% Free Cash Flow Yield
- Dynamics Research: Deeply Undervalued by Free-Cash-Flow-Yield
- Apple vs. Netflix: The Perfect Long/Short Pair Trade
- Recent Pullback in Telenav Offers a Compelling Opportunity to Load Up on This Stock
- 7 Basic Materials Stocks With Strong Upward Momentum
- Playing the Long Apple / Short XLK Hedged Pair Trade
- 5 Stocks With Low Price to Free-Cash-Flow and Strong Institutional Buying