Qualcomm (QCOM)

Likes the royalty play on 4G, and as China continues to upgrade to 4G, this company has most of the chips and will benefit. Very smart operators. 2.1% dividend yield. Thinks you could slap on a 15X multiple on earnings, which will give you $75 a share plus their cash of about $20 a share.

(Top Pick May 16/13, Up 23%) This is the parts maker for the smart phone industry. They will do well. Continuing from 2-3-4 G in the emerging markets. Not an expensive stock.

They do royalties off of their technologies for hand sets. She has shied away from the whole handset area, because it is becoming quite commoditized. Growth is coming from emerging markets where devices are lower priced. If you want exposure this is one of the better ways to play it as a supply to various handset manufacturers. They are facing some anti-competition investigation in China, so that is something to watch out for.

Buy more Qualcomm (QCOM-Q) or go to Apple (APPL-Q)? Diversification is always a good thing. What percentage of Qualcomm makes up your portfolio? Without that info, he prefers to give just a broad answer to the question. Apple has lots of legs, and is being driven by a few things including first and foremost, innovation. There has been a lot of talk that innovation is dead at Apple. Looking back to the time between the interaction of the iPod, the introduction of the iPhone, followed by iPad, we are really not out of sync so much. Apple is primed for a very big jump if and when they come out with a product that in any way looks like it comes close to the iPod, iPhone and the iPad. If they do, you will see organic growth in earnings and cash flow and revenues rise dramatically. What will really drive the stock is that the multiples will rise because the confidence of the investors will rise to the point that they will be willing to pay more per $ of earnings, being a P/E ratio. Right now the P/E ratio on Apple is quite muted, and could rise 25%, 30%, 50%.

Great company. Great franchise. It is in one of the best sectors in smart phones. Have some great products coming out. Not expensive, and it pays a dividend. Have executed incredibly well.

Growth tech stocks have done okay recently and so has QCOM. Despite being outside the Tech seasonal period they have done well. He suggests an aggressive trailing stop. Maybe $78 for a stop.

(A Top Pick April 11/13. Up 19.5%.) The 19% just represents the growth of the fundamentals of the company, so from a valuation standpoint, it is much the same area as it was a year ago. Still likes. Third in chipsets globally. Have a firm control of 90%+ share of the LTE market.

Very interesting story on the chip side in the smart phone business, where the world is going and growing. Nice yield, 14 times earnings, 10% EPS growth over the next 4 to 5 years. They have a great road map for where they want to go. Way ahead of their competitors in the sector. Over the long term they have shown they can execute.

This is like the arms dealer in the war – selling chips to each cell phone maker. Shown great growth and still get royalties in all the old CDMA products. Good penetration into the Chinese market which is the fastest growing cell phone market in the world.

Serve BB, IOS and Android markets. Strong patent lineup. Just increased dividend by 25%. Conservatively financed. Fairly valued.

Has avoided the hardware handset business. If you want exposure to that space, this is probably the best way to play it because they are the supplier into various handset manufacturers. Growth is slowing. The company is returning cash to shareholders.

This is a case where you don’t have to buy the handset maker; you buy the chipset maker who supplies to everybody. The rapid expansion in China, including low-end phones, is alive and well and is a great opportunity for this company. Have $18 billion in cash. Authorized repurchasing of almost $8 billion in stock for 2014. Raised their dividend by 20%. Yield of 2.2%.

Likes this. It really controls the LTE chip set market. It doesn’t matter what piece of hardware it goes into, it is likely to be a QUALCOMM chip. Trading at about 15X earnings so it is very reasonably valued. Growing quite nicely. For every phone that is sold, this company makes $2. Has a very large patent portfolio.

(Market Call Minute) Chipsets to mobile phones. Prices are going down in hardware so this is the best place to play it.

You don’t have to choose between phone providers. They have a huge percentage of the LTE market (~97%) and make $2-$2.25 per phone. It is money in the bank. They continually bring on new patents. Only 15 times earnings and it deserves a higher multiple. Organic growth will propel it forward.