Thursday, 28 January 2016

QCOM - reasonable EPS, lousy revenue

Whilst the main market closed moderately mixed, there was rather severe weakness in Qualcomm (QCOM), settling -8.3% @ $43.58, the lowest level since Oct'2011 - back to the distant days of sp'1074. Near term outlook offers the 42/40 zone, with broader spring/early summer downside to the 32/30 zone.. if sp'1600s.

QCOM, daily

QCOM, monthly


Competition remains rather fierce in semi-conductor world, and QCOM is struggling to find buyers.

It is notable that (adjusted) EPS of 85 cents was clearly still a good number, but revenue was -18.7%.

From a pure price perspective, QCOM has been increasingly weak since the July 2014 peak of $78.58. It would seem QCOM is headed for the low 30s across the next 2-4 months.

*I would be very curious about QCOM in the 32/30 zone.. by April/May. For now.. its one to merely keep an eye on.