Does Qualcomm Belong in Your Portfolio?

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With shares of Qualcomm (NASDAQ:QCOM) trading around $73, is QCOM an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Qualcomm is engaged in the design and manufacturing of digital communications products and services. The company operates in four segments: Qualcomm CDMA technologies, Qualcomm technology licensing, Qualcomm wireless and Internet, and Qualcomm strategic initiatives. It develops and supplies integrated circuits and system software based on CDMA, OFDMA, and other technologies for uses in voice and data communications, networking, application processing, multimedia, and global positioning system products.

Qualcomm’s CEO Paul Jacobs said on Wednesday that the U.S. mobile chipmaker still has not been notified about why it has come under antitrust scrutiny in China since late last year. In November, Qualcomm announced that China’s National Development and Reform Commission had launched an antitrust probe into the company. The chipmaker said it was unaware of any possible violations.”We really don’t know yet,” Jacobs told Reuters in an interview at the Consumer Electronics Show in Las Vegas. He added that it is not unusual for authorities in various countries not to disclose reasons for their antitrust probes. Qualcomm has since handed over requested documents to the NDRC. The NDRC has launched nearly 20 pricing-related probes of domestic and foreign firms in the last three years, according to official media and research published by law firms.

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