Buy Qualcome now!

Qualcome (QCOM) is a very successful chip company, a leading force in the mobile chip business. It is very profitable with a profit margin at 30% and return on equity at 21%. It has zero debt but with a huge cash load in hands, $11 per share cash sitting in the account. It is paying a 2.5% dividend at the current price around $68. This kind of stock is usually traded at a high premium and should be very expensive, but not Qualcome. Actually it is extremely cheap at the moment. The major problem for Qualcome in the past year was the antitrust probe ongoing in China. Since China is such a huge market for Qualcome, people were scared with this legal dispute and dumped and ran. However, this depressing episode has ended tonight for Qualcome: it was just announced that Qualcome has reached a patent settlement in China by paying a $975 m fine to resolve the issue. This is a big relief for Qualcome as the huge headwind is now behind it. It is back to its takeoff trajectory and will fly again! I think it will be an easy run for QCOM to $90 or even higher very soon! Buy QCOM!