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.