Investors "Sell The News" As Qualcomm Spikes Higher Off Shareholder Activism

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

'' Qualcomm Inc. shares are unchanged at $69.17 in Monday's session. It is well off its high for the day that was made shortly after the open at $71.90. And that is $1 lower than its premarket high of $72.90. Speculators hastily purchased shares off the announcement that Jana Partners is pressing the company to spin off its chip unit according to a quarterly letter sent to the company, As always with an activist letter can instigate a short-term move in an issue, but whether or not the recommended actions are acted upon is another story. The intraday high ($71.90) coincides with its March 11 high ($71.72). After that high was put in place, the issue declined to $65.68 on March 26. It appears the rapid rise back to that level was too tempting for investors caught in the downdraft to resist and has driven the issue back to unchanged for the session.