Qualcomm (QCOM)

There had been a little bit of concern on average selling prices and where their margins were heading, but she still feels pretty comfortable with this. Trading at about 13.5X earnings. Earnings growth has been about 20% this year. Thinks there are a lot of opportunities on their chipset business because they make so much money off the royalty side. You have to keep a pretty close eye on this one.

Is this company losing market share in the smart phone/tablet industry to its competitors? Actually they are picking up steam and picking up market share. In 2010, it ranked 9^th, 2011 ranked 6^th and now it is 3^rd in terms of total chipset volume and he would expect this to continue because they basically own the LTE chip space with 97% of the volume. Reasonably priced at about 15X earnings. They make $2 for every smart phone sold.

Manufactures chips and solutions for many of the smart phones. Have a really nice established business with a great balance sheet. Once the economies of the world reaccelerate on a global basis, they have a great opportunity.

Likes this one because of its exposure into the smart phone space. The new wave is more and more video on smart phones and they have a chip set that is really geared towards that. Stock has been a bit weaker in the last month or so but longer-term this stock can continue to move up. 2.3% dividend, which he thinks will increase over time.

(Market Call Minute.) Mobile smart phones are weakening.

(Market Call Minute.) They make $2 every time a smart phone is sold. They supply to everybody. Have one of the largest patent portfolios globally.

Recently purchased. Leading manufacturing of digital and wireless equipment. They have a chip set called snap-dragon which is geared towards the media center, video and television on the smart phone. Thinks tech is a bit undersold at this point.

Great company and a great opportunity to buy it at these levels. Lots of free cash. They increased their dividend. Well run company with some great technology. If you buy it here you are fine for the long run. 2.2% yield.

Market leading tablet chip supplier for the smart phone and tablet markets. Should be able to keep pace with the growth in the tablet and smart phone markets, which are both gaining market share so it has great strong secular tailwinds behind it. Yield of 2.11%.

Effectively a play on all things mobile such as smart phones, etc. It makes the chips that go into the phones. Has been a very high growth stock and is effectively a royalty type business. Good company but very expensive. He prefers Taiwan Semiconductor (TSM-N) which is a better company, better balance sheet, better growth profile and is cheaper.

Great business model. Large chunk of revenue comes from a royalty stream and this is from licensing their 3G, 4G and LTE products. Heavily geared towards mobile. You don’t have to make a call on Apple, Blackberry, etc. because this company makes parts and solutions for all of these companies. Sees it at $76 over a 2 year time frame.

Chipset manufacturer. This is a play on all phones. 70% of their business comes from off their licensing business. For every smart phone sold, this company makes about $2. Trading at about 14-15 times earnings. Dividend of 2.09%.

Excellent stock and excellent products. Just came out with new ones yesterday. Continued sustainability in the average selling price of the handsets. 4.5 times earnings. Handsets are only 16 percent of market so lots of growth.

Is $90-$95 too bold for a target price? Doesn’t think it is too bold but you need a timeframe on it. Sometimes stocks can run a long way on momentum and do themselves more harm than good because they get a little overvalued and then fall back, causing consternation. This company has lots of cash. 70% of their revenue comes from their licensing streams so it is a recurring issue.

Represents about 45% of network connectivity. This is a key supplier to Apple and other big tech names. Has chip technology and licensing business.