Barron's Sees Opportunity for Patient Investors in Qualcomm (QCOM)
3/18/2010-Shares of Qualcomm (NASDAQ: QCOM) are down 16% this year and up just 4% over the last 12 months, well off the Nasdaq's 63% rise, which is why Barron's sees a compelling opportunity for patient investors.
Wall Street was surprised by recent data from Qualcomm that showed a larger-than-expected erosion in mobile phone prices, which negatively affects the royalties that Qualcomm receives on every 3G handset worldwide.
"Investors have short-term blinders on here," says Sandy Sanders, a co-portfolio manager of the Evergreen Fundamental Large Cap Fund, which owns Qualcomm stock. "The reality is that the company is going to be able to sustain its market leadership in 3G and be able to capture royalties on a consistent long-term basis."
At the company's current price, Sanders calls the stock a "table-pounding buy."
Write to Chip Brian at cbrian@tradethetrend.com
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