Fri, Oct. 21, 9:52 AM| Fri, Oct. 21, 9:52 AM | 58 Comments
Thu, Oct. 20, 3:02 PM
- Qualcomm and NXP Semiconductors (NASDAQ:NXPI) were considered to be off by less than 10% regarding valuation two weeks ago.
- Bloomberg's now reporting a deal may be announced sometime next week.
- Qualcomm (NASDAQ:QCOM) shares higher by 2.25% on the day, 1.85% of which has been realized over the last ten minutes.
- Update: All-cash deal under consideration, disclosure before Qualcomm's November 2 earnings suggested.
Tue, Oct. 18, 3:01 PM
- Qualcomm (QCOM +1.4%) issued details on its Snapdragon X50 5G modem, setting a H2 2017 timeline to begin sampling and a H1 2018 release target for use within commercial products.
- The company intends "to deliver a product that will help play a critical role in bringing 5G devices and networks to reality."
- Although the 5G phase of networking is generally not expected to reach large-scale commercialization until at least 2020, Qualcomm appears to be proactively looking to push that time frame ahead of schedule.
Sun, Oct. 16, 9:49 AM
- "Value investing works like clockwork, but sometimes your clock has to be very slow," says Joel Greenblatt, asked in a Barron's interview about the recent underperformance of some of his funds. The man behind the classic "You Can Be A Stock Market Genius" also published a barely-read "The Big Secret For The Small Investor" five years ago, noting, among other things, that average investors tend to dump good strategies at precisely the wrong time.
- Favorite longs in his long/short portfolio now include Apple (NASDAQ:AAPL), with double-digit cash flow yields vs. the S&P 500 at less than half of that. "People worry that it’s effectively a hardware company that will crash and burn. But it’s also an ecosystem of products that play with one another and a brand people like."
- He owns not just Apple, he says, but a "bucket" of Apples - companies with gushing cash flow, huge returns on capital, and nice market niches. Qualcomm (NASDAQ:QCOM) and CVS fit the bill.
- On the short side is Salesforce.com (NYSE:CRM) at 218x pretax earnings and 7x sales. Even if optimistic earnings estimates prove true, it's still selling for 50x. Others include Costco (NASDAQ:COST) - a great retailer, but still a retailer - at 28x earnings, but not growing and also competing with Amazon. Another is Caterpillar (NYSE:CAT), which has fans thanks to its 3.5% yield, but doesn't earn enough to pay that dividend.
- Gotham funds: GENIX, GARIX, GONIX, GINDX
Fri, Oct. 14, 5:46 PM
- Qualcomm (NASDAQ:QCOM) had formally taken up legal issue with Meizu in China back in June on patent infringement charges. Similar complaints have now extended beyond Meizu's home country to North America and Europe.
- EVP and general counsel at Qualcomm Don Rosenberg: "Meizu's refusal to negotiate a license agreement in good faith and its sales and distribution of infringing products around the world leave Qualcomm with no choice but to protect our patent rights through these additional legal proceedings."
- Filings with the U.S. International Trade Commission and Germany's Manheim Regional Court noted with infringement-seizure action to obtain evidence for potential future movement taken in France.
- Qualcomm shares higher by 0.30% after hours.
Thu, Oct. 6, 2:36 PM
- Bloomberg notes NXP Semiconductors (NXPI +1.6%) and Qualcomm (QCOM +1.5%) are off by less than 10% in terms of valuation.
- Deal structure of 75% cash, 25% stock cited as preferred by Qualcomm with an all cash deal preferred by NXP. Qualcomm looking at $110 per share, NXP at $120.
- Qualcomm considered only takeover-interested party to be involved.
- Development is notable with the situation reportedly not imminent just hours ago.
Thu, Oct. 6, 10:03 AM
- Discussions with Qualcomm (QCOM) reportedly remain ongoing, though a deal is not considered to be imminent.
- A $120 level would be in line with earlier models out of Bernstein.
- NXP Semiconductors (NASDAQ:NXPI) is trading mostly unmoved (-0.70) on the report, though is up more than 23% since news Qualcomm was interested in a takeover first broke.
Thu, Oct. 6, 9:24 AM
Wed, Oct. 5, 2:21 AM
- It looks like Samsung Electronics (OTC:SSNLF) has bagged a contract to manufacture Qualcomm's (NASDAQ:QCOM) upcoming 10-nanometer Snapdragon 830 chips, according to Korea's ET News, which states the SoC will be used in the Galaxy S8.
- Samsung said in January it was the sole manufacturer of the predecessor Snapdragon 820 - a deal that some analysts said at the time was worth more than $1B.
Fri, Sep. 30, 10:22 AM
- RBC Capital Markets analyst Amit Daryanani notes a deal would mark a good use of cash for Qualcomm, increase its portfolio diversity, allow it to leverage IoT plans into automotive and other sectors and potentially offer material accretion over upcoming years. On the other end, Daryanani points out some concerns for Qualcomm relating to debt position and integrations of NXP Semiconductors stemming from the latter's recently closed Freescale merger.
- Bernstein's Stacy Rasgon and Jefferies' Mark Lipacis comment on potential buyout prices, offering respective approximate $120 and $136-$172 ranges.
- NXP Semiconductors (NXPI +7.1%) is trading higher by around 25% since mid-day yesterday while Qualcomm (QCOM +2.9%) is up over 10% on the same term.
Fri, Sep. 30, 8:11 AM
Thu, Sep. 29, 1:17 PM
Fri, Sep. 16, 1:44 PM
- While already anticipated, Intel (INTC +2%) components are now confirmed to be installed within certain iPhone 7 configurations. Two Intel RF transceivers, a baseband modem and RF power management ICs are noted.
- Modems, transceivers and power management ICs provided by Qualcomm (QCOM +0.2% ) are also confirmed to be utilized in other device variations. Qualcomm had historically maintained an exclusive provider position of modem components for previous iPhone iterations.
- Supplies from Skyworks Solutions (SWKS -1.9%), Cirrus Logic (CRUS -1.8%), Samsung Electronics (OTC:SSNLF), Taiwan Semiconductor Manufacturing Company (TSM -0.7%), NXP Semiconductors (NXPI -2.2%), Broadcom (AVGO -1.3%), Qorvo (QRVO -2.4%), Texas Instruments (TXN -0.5%), Toshiba (OTCPK:TOSBF +4.4%), Lattice Semiconductor, (LSCC -0.6%), Dialog Semiconductor (OTC:DLGNF), SK Hynix (OTC:HXSCF) and other makers also so far validated.
Wed, Sep. 14, 10:02 AM
- Key telecom patent holders are joining forces, creating a one-stop shop for companies that need to license technology in building a connected future ranging from the "Internet of Things" to connected cars.
- A newly formed company, Avanci, incorporates patents of partner firms including Qualcomm (NASDAQ:QCOM), Ericsson (NASDAQ:ERIC), ZTE (OTCPK:ZTCOY) and Royal KPN (OTCPK:KKPNY). It will offer flat-rate licenses for patents in 2G, 3G and 4G technology that will vary based on the "value the technology brings to the device."
- Such a setup will let those building connected cars, or smart meters and thermostats, quickly settle licensing around required patents without wading into complicated negotiations with several parties. For the telecoms, it means more and easier licensing opportunities beyond phones and tablets.
- Kasim Alfalahi had left Ericsson to found the new group.
Mon, Sep. 12, 4:11 PM
- Extends a relationship with Amkor Technology (NASDAQ:AMKR) in an effort to improve supply chain and operational efficiencies.
- Facility to be know as Qualcomm Communication Technologies Ltd.
- Qualcomm China (NASDAQ:QCOM) chairman Frank Meng: "Qualcomm Technologies continually strives to improve our manufacturing footprint in China and the formation of Qualcomm Communication Technologies in Shanghai is another example of this dedication."
- Amkor president and CEO Steve Kelley: "We are excited to work with Qualcomm Technologies in their new test operation in China. Amkor offers the most advanced outsourced assembly and test technologies in China, and this expanded relationship is a natural extension of the long history of close collaboration between our two companies."
- Operations are set to commence October 18.
Fri, Sep. 9, 3:39 PM
- While Apple (AAPL -1.8%) has exclusively used Qualcomm (QCOM -3.1%) modem components in past iPhone devices, Intel (INTC -2.2%) supply has made its way into the new 7 and 7 Plus models.
- Though reasoning as logical as carrier compatibility (Sprint and Verizon are not supported by Intel's modem chip) could be figured, Recode points out keeping Qualcomm and bringing on Intel signals a deliberately strategic move.
- While the supplier adjustment marks a boon for Intel (some analysts are forecasting up to half of iPhone 7 devices shipping with its components) and the loss of an exclusive provider position for Qualcomm, Apple's advantage resulting from the arrangement remains most marked.