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Wednesday May 17th 2006
'Cell Side'
QCOM (QUALCOMM INCORPORATED )
"What you want to know is why
things are bad and what to do
about it.
Stocks are like gravity; if
they've gone up a lot, then they
are going to come down a lot.
If they're up big for the year,
then they really got hammered
today.
On Mad Money, we don't care
about today; we live in the
future on this show!
And you want me to look into my
crystal ball and tell you my
take on the future. No
problem - that's my job.
What we're getting now is a
total washout.
We're not there yet. So
close, so close, but we're not
there yet. We need all of
the negativity swept out in a
massive frenzied purge that
knocks everything down, and puts
everyone in the house of pain.
Only then, can you get doing the
'mon-back; only then, can you
get aggressive!
You need to wait for the tidal
waves to come through, and
really smack this market around;
a crescendo selloff to create
some buying opportunities.
Some of this we saw today.
I've got to tell you, I think
thing financials are already
cooked; I think the techs are
already cooked. I think
the healthcare is ready to come
off the grill, and getting ready
to eat.
We needed all this to happen.
We needed the golds to give up
their huge gains.
We needed to see a second down
day in the ethanol players; I'd
like to see that
PEIX down $5. I'd like
to see that
ADM under $40. We need
to see every last winner taken
out and shot before we get
bullish; before things get
oversold, and not that
dangerous.
Last night, I said tech was
putting in a bottom; I saw that
again today - Thank you
Hewlett-Packard (HPQ)!
Now, the oil service stocks, I
saw a bottoming in that index
today. Healthcare bottomed
a while ago. Financials,
as represented by the BTX - the
bank index, they evidenced a
real bottom - failure of any of
the major banks to go down.
Not the brokers - not the
GS, not the
BSC, not the
LEH - they're not done; they
need more - sell, sell, sell! -
before they finish.
The other sectors are coming.
As the market bottoms - and
we're so close I can taste it -
we've got to continue to pick at
stocks. Just pick - and
still be patient and let the
bears picnic.
When things get this bad, we go
bargain hunting. A bargain
isn't a broken company; it's a
broken stock.
A broken stock like Qualcomm
(QCOM)!
QCOM makes the brains behind
cell phones.
I think QCOM is the ultimate
3rd generation cell phone
network play. Especially
as 3G gets rolled out all over
the world, especially in Europe
and Japan.
They do all this because they're
the masters of CDMA (Code
Division Multiple Access) - the
technology that makes most
digital cell phones possible.
QCOM stock should be massively
overprices right now, but we got
a lucky break! 9 tenths of
successful investing is luck!
The other 10% is being prepared
to capitalize on that luck.
I think QCOM has sold off
because of this ITC Staff
finding. Listen!
Everyone is misreading this!
But still, how about a worst
case?
What could the damage be if
QCOM loses? QCOM won't
have to stop production of
anything.
I think this dispute ends up
being resolved either with a
cash payment or some sort of
settlement.
QCOM be cheap for a bad reason.
It seems like this ITC ruling is
being blown out of proportion.
The selloff is overdone.
When you buy this stock, you're
not just buying a stock in a co.
that makes the brains of cell
phones - strong business -
you're getting more than that.
You're also getting a co. that
raises guidance like it's
nobody's business! Buy,
buy, buy!
It's like QCOM has taken the
art of UPOD (underpromising and
overdelivering), and raising it
to a whole new level.
The bottom line!:
QCOM be a great tech stock, a
cheap tech stock, and a tech
stock that knows how to play the
expectations game like a pro!"
