Qualcomm’s Vision For the Future

Qualcomm is a fascinating company. Qualcomm (QCOM) designs, develops, manufactures and markets digital communications products and services based on CDMA, OFDMA and other technologies. Most people are familiar with Qualcomm being used either as chipsets or their technology licensed into other chipsets – and the technology is pervasive. This post discusses and links you to Qualcomm’s vision for the future.

Qualcomms’s Vision For the Future

Qualcomm chips and/or technology is pervasive in almost every smartphone in the world. The company is an enabler of communications and is at the forefront of cracking new spaces and opening up avenues for hundreds of companies to flourish. Initially Qualcomm started off as simply a focused company on some radio technologies and realized that they could build the chipsets and navigated into a gold mine by making some strategic bets in the past 20 years. The company timed perfectly the maturity of the industry and enabling communication for smartphone launches and now that the smartphones have saturated (atleast in the western world), the company is looking at other avenues for new growth. Steve Mollenkopf, CEO of Qualcomm, discusses their vision in the video below (video length: 1h27m). I invite you to watch it – whether you are interested in Qualcomm as an investor or simply interested in the technology space and understand where things are headed in the near future. For the investment-focused folks, be sure to also check out the slides from 2014 New York Analyst Day held a couple of weeks ago.

Disclosure: Long QCOM. My full list of holdings is available here.

Chatter Around the World – 72

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

Oil Correlation

Countries outperform/underperform in when oil falls via Citi

New Blog Posts

Let’s dive into the links that caught my attention this week.

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The PEG Ratio

Stock Valuation The PEG Ratio, short for price-to-earnings to growth ratio is a quick short hand of figuring out which stocks are possibly undervalued. The current conditions make for very elevated levels of market valuation of most equities except for a couple of sectors (commodities and energy). In searching for undervalued stocks, looking at the PEG ratio may provide you with a clue.

The PEG Ratio

A stock’s PEG ratio is simply the Price-to-Earnings ratio divided by the (expected) earnings growth rate. Note that technically, PEG ratio can indicate “forward PEG” or “trailing PEG”. Since we are only concerned about the future earnings for new investment dollars, it is a good idea to look at the forward PEG ratio in evaluating stocks. The lower the PEG ratio, the more undervalued a stock is. A rule of thumb used in the industry to evaluate stocks is looking for a number less than 1 – indicating that a stock is possibly undervalued. The PEG ratio provides a better picture than simply looking at the P/E of a stock. For e.g., you may choose to use a screener and exclude high P/E stocks, say anything over 20. This may not be the best course of action, as the high P/E might be justified if the company is expected to grow its earnings aggressively over the next few years.

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Recent Buy – Bank of Nova Scotia

Scotiabank

I re-initiated my position in Bank of Nova Scotia (BNS.TO). After cancelling my DRIP plan with BNS earlier this month, I moved my funds over to a tax-sheltered account and bought the shares. Going forward, I will not be paying any dividend withholding taxes or capital gain taxes on my BNS holding. The stock is still approx 15% undervalued at current levels.

Read my full dividend stock analysis here.

Chatter Around the World – 71

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

Keystone XL

More likely to vote for a candidate who supports approving construction of the Keystone XL pipeline

New Blog Posts

Let’s dive into the links that caught my attention this week.

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