Filed under: Bad news, QUALCOMM Inc (QCOM), Broadcom Corp’A’ (BRCM), Options, Technical Analysis

QUALCOMM Inc. (NASDAQ: QCOM) stock opened lower this morning after a federal judge in California ruled on Monday that the company must immediately halt selling third-generation (3G) WCDMA cellular chips, as they seem to infringe on patents held by rival Broadcom (NASDAQ: BRCM). According to analysts, QCOM may eventually have to pay royalties to BRCM due to the ruling, which would negatively affect its guidance, though the ruling allows QCOM time to implement a workaround solutions before any royalties can be imposed. Shortly after the open, QCOM announced the launch of new chips it says will comply with the ruling. If you think this stock won’t be rising too far in the coming months, then now could be a good time to look at a bearish hedged play on QCOM, since options prices could be high at this time.

After hitting a one-year high of $47.72 in May, the stock hit a one-year low of $35.23 in August. This morning, QCOM opened at $38.23. So far today the stock has hit a low of $38.12 and a high of $39.80. As of 11:15, QCOM is trading at $38.92, down $0.42 (-1.1%). The chart for QCOM looks bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

Continue reading Qualcomm (QCOM) unfazed by court ruling

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This entry was posted on Wednesday, January 2nd, 2008 at 3:15 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.