Qualcomm (QCOM) Offering Possible 9.65% Return Over the Next 6 Calendar Days

Qualcomm's most recent trend suggests a bullish bias. One trading opportunity on Qualcomm is a Bull Put Spread using a strike $78.50 short put and a strike $73.50 long put offers a potential 9.65% return on risk over the next 6 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $78.50 by expiration. The full premium credit of $0.44 would be kept by the premium seller. The risk of $4.56 would be incurred if the stock dropped below the $73.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Qualcomm is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Qualcomm is bullish.

The RSI indicator is at 55.19 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Qualcomm

Qualcomm (QCOM) Stock Sinks As Market Gains: What You Should Know
Thu, 12 Sep 2019 21:45:09 +0000
Qualcomm (QCOM) closed at $79.08 in the latest trading session, marking a -1.03% move from the prior day.

Telecom Stock Roundup: Qualcomm Plans Low-Priced 5G Chips, CenturyLink's Deal & More
Thu, 12 Sep 2019 14:55:02 +0000
While Qualcomm (QCOM) is planning to develop cheap 5G chipsets for the masses, CenturyLink (CTL) aims to strengthen its position in the content delivery network with the acquisition of Steamroot.

China Tariff Delays Put Semiconductor Stocks in Focus
Thu, 12 Sep 2019 14:15:40 +0000
Yesterday, President Trump tweeted that he would delay the upcoming hike on the China tariffs. US semiconductor companies are sensitive to trade wars.

Micron Stock Is Poised to Surge, but Be Careful in the Short Term
Thu, 12 Sep 2019 12:10:05 +0000
The long-awaited Micron (NASDAQ:MU) recovery appears to have finally arrived. Micron stock and profits took a beating last year because of a combination of the decline in crypto and an emerging trade war.Source: Charles Knowles / Shutterstock.com However, new technology has begun to drive what looks like a permanent demand increase in memory chips.Moreover, both management sentiment and analyst estimates have shown beginning signs of a recovery. MU stock has recovered as a result. With this uptick, the question becomes when to buy Micron stock, not whether to buy.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Micron Will Head HigherAll of us make bad decisions on stocks from time to time. Unfortunately, my wrong call caused me to miss the uptick in MU stock.Three days after saying that the trade war would keep MU "suppressed in the short term," the company released a report that blew my short-term investment thesis out of the water. * 10 Stocks to Sell in Market-Cursed September Management gave a presentation at a technology investment forum on Aug. 12. There, they announced that while inventories remained high, cloud and graphics have meaningfully increased demand for memory chips.This news became the catalyst that took the Micron stock price from the low-$40s per share range to over $50 per share today. I have described MU stock as a different breed from chip stocks such as Intel (NASDAQ:INTC), AMD (NASDAQ:AMD), or Qualcomm (NASDAQ:QCOM). MU stock remains a proxy for memory prices, and the recent uptick again shows that. MU Stock and Long-Term ProspectsAdmittedly, even as the stock fell from the low-$60s per share range to below $30 per share, the long-term outlook has remained strong. Artificial intelligence (AI), self-driving cars, the Internet of Things (IoT), and 5G will drive a permanent increase in demand for memory chips.Moreover, bitcoin again sells for over $10,000. The decline of crypto played a significant role in the falling demand for memory. Hence, it stands to reason that a price recovery should lead to at least a partial revival in demand for memory as crypto mining again becomes more economical.Furthermore, valuations remain reasonable. MU currently supports a forward price-to-earnings (PE) ratio of 19.8 and a trailing PE of around 5.9. Granted, with the rock-bottom PE ratio Micron has supported, the forward PE may appear pricey. The average PE ratio over the last five years has stood at only about 12.8.However, over the last month, Micron received something it had not seen in some time–rising earnings estimates. After falling for more than a year, earnings estimates for this year now stands at $6.23 per share. For fiscal 2020, they have risen to $2.56 per share. I expect the 2020 forecast will keep rising if the demand estimates hold. Watch out for the Short TermHence, I expect MU stock will keep moving higher from here over time. The question becomes what it will do in the short term. I made my wrong call early last month at around $41 per share.Now that MU has moved past $50, it has seen an increase of more than 20% in just over a month. I do not think it will return to the low $40s per share range anytime soon. However, this relatively quick rise could bring some profit-taking and a partial pullback.Moreover, investors should note that trade talks have resumed. Negotiations do not constitute an agreement. Admittedly, they could lead to one at any time. In that case, I think MU stock spikes higher from here.However, we have been on the cusp of an agreement more than once only to see negotiations fall apart. This sent MU and other stocks down before. It would likely do so again. I see such an action as the ideal time to buy Micron stock. The Bottom Line on Micron StockRising demand has helped to revive MU stock. Now, investors need to know when to buy. A management presentation pointing to increasing demand began a surge in MU that would take the equity more than 20% higher over the next month. Analyst revisions and better prospects for a trade deal almost helped Micron.However, the surge in MU stock could lead to some profit-taking. Also, it remains possible that trade talks will deteriorate. For these reasons, Micron stock could face a short-term pullback.Still, even if sentiment turns bearish for a time, the long-term prospects for MU stock have begun to bear fruit. This should only accelerate as consumers start to buy 5G-compatible smartphones.Investors who want to protect themselves from a short-term pullback should either buy in slowly or wait. However, the recovery in the chip sector has begun in earnest. This by itself makes MU stock a buy, if not now, then soon.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Micron Stock Is Poised to Surge, but Be Careful in the Short Term appeared first on InvestorPlace.

Huawei Tries to Romance a Washington That Spurns Its Overtures
Wed, 11 Sep 2019 23:00:00 +0000
(Bloomberg) — Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Huawei Technologies Co., after having practically shut down its Washington operation, last month added a trio of well-connected lobbyists to a swelling corps of influencers.It has sent executives to schmooze journalists and even started using Twitter to persuade the Trump administration not to ruin its business.But it may be an unwinnable fight.“Huawei is mistrusted by intelligence community careerists, congressional Democrats and Republicans, and many (but not all) American tech companies,” Bruce Mehlman, former assistant secretary of commerce for technology policy, said in an email. “They have a much larger problem than just the Trump administration.”The White House has been pushing allies to cut ties with the Chinese company over allegations its networking gear poses an espionage risk. The campaign has had mixed success but Vice President Mike Pence last week urged Iceland not to use Huawei gear and recently signed a security agreement with Poland that could block the company from the Eastern European nation.At home, the Trump administration banned U.S. companies from doing business with the Chinese technology giant. Lawmakers who last year blocked government agencies from buying Huawei gear are considering more legislation aimed at the company that Senator Ted Cruz called “a state spy agency masquerading as a technology company.”The company isn’t giving up trying to win friends and influence people in Washington. In March, it registered Washington lobbyists with Congress for the first time since 2012. Those hired include Samir Jain, a Jones Day partner who was a cybersecurity official under Democratic President Barack Obama.Huawei also has engaged the law firms Sidley Austin LLP and Steptoe & Johnson, and Michael Esposito, who on his firm’s website is described as part of the senior leadership of the Republican National Committee.On Aug. 30, three lobbyists from Squire Patton Boggs registered to work for Huawei. They include Edward Newberry, who once was deemed a “King of K Street” in a New York Times article, according to the law firm. Jack Deschauer, a former director of Senate affairs for the secretary of defense and Jeff Turner, an expert on U.S. scrutiny of foreign companies, also registered. None of the three returned a telephone call seeking comment.The company has also hired Boston-based Racepoint Global Inc. and WPP’s BCW LLC.Racepoint, with a two-year agreement signed in September 2018, is to provide “ongoing public relations support” including advice on strategy and social media, according to a foreign-agent disclosure filing with the Justice Department. Racepoint won’t have direct contact with government officials, the firm said in the filing.BCW in March registered its agreement to provide advice to Huawei, with a budget not to exceed $160,000 and work to include media outreach and opinion research “to be billed at crisis rates,” according to the filing. In an August filing, BCW said its relation with Huawei had ended. Catherine Sullivan, a BCW spokeswoman, declined to take questions about the relationship.Huawei has deployed Tim Danks, a vice president with the company since 2009, and Andy Purdy, its chief U.S. security officer in the U.S. Purdy joined Huawei in 2012. Earlier he helped establish the Department of Homeland Security’s cybersecurity office and served as its leader for two years ending in 2006.“We’d like to engage,” Danks said in an interview with Bloomberg reporters and editors. “The U.S. government hasn’t been very forthcoming.”In a Bloomberg TV interview Aug. 29, Danks said, “We believe that there is a way forward. We’re hoping that with further engagement with the U.S. government that we’ll be able to find a solution to the current situation.”Days after Danks spoke, Trump renewed his criticism of Huawei, calling it “a big concern of our military, of our intelligence agencies.” Earlier his administration had moved to bar the gearmaker from American markets and deny it key U.S. parts. U.S. officials say Huawei gear could be used for spying by Beijing — an allegation rejected by the company.“The administration has pretty much made is position clear,” said James Lewis, director of the technology policy program at the Center for Strategic & International Studies in Washington. “How are you going to to talk them out of that?”As the company has become a focal point for U.S.-Chinese tensions, some have regarded it as bargaining chip in sensitive trade negotiations. China and the U.S. on Sept. 5 announced that face-to-face negotiations aimed at ending their tariff war will be held in Washington in the coming weeks, amid skepticism on both sides that progress can be made.Even as Danks and Purdy propose ways to end the standoff with the U.S., Huawei elsewhere has veered to defiance. The company in a tweet last week cast his visit as part of a political agenda that will disrupt Europe’s adoption of fast 5G mobile technology, and cited “U.S. pressure against China and Huawei.”Trump’s export restrictions stand to cut off vital supplies, from Qualcomm Inc. chipsets to Google’s Android operating software.The crisis may be deepening: Google confirmed the upcoming Huawei flagship smartphone won’t have licensed Google apps, a minus for consumers wanting access to the search giant’s proprietary maps and other features. Sales outside China could be slashed in half, Bloomberg Intelligence analyst Charles Shum said in a Sept. 4 note. Huawei’s sales in China, where consumers have had no access to Google services since 2009, won’t be affected.Danks and Purdy, the Huawei executives, in the Aug. 28 interview suggested that security concerns could be met by applying uniform standards to all companies involved in telecommunications networks.Huawei executives reject the notion that the company may do the bidding of China’s spy agencies by relaying traffic that flows through its network gear. “We couldn’t comply. We don’t have access to that data,” Danks said.The Trump administration has delayed implementation of its Huawei restrictions. Purdy said that if Huawei reaches an agreement with the administration, “We’re hoping we can continue to serve our small rural carriers.”The company’s founder and chief executive officer, Ren Zhengfei, in an interview with the New York Times published Tuesday, proposed negotiations with the U.S.Ren’s daughter, Meng Wanzhou, is in Canada awaiting extradition proceedings after her arrest last year at the behest of the U.S. government, on charges related to trade sanctions.The Trump administration was right to move against Huawei, and shouldn’t ease restrictions as part of trade talks, billionaire investor George Soros said in a Sept. 9 opinion piece in the Wall Street Journal.While the largest U.S. carriers have spurned Huawei gear over security concerns, smaller operators have purchased it, citing low prices and good reliability. Some of them cite a lack of public evidence pinpointing the alleged security risk, and suspect the entire dispute is tied to leverage in the trade talks.“We’re kind of in the middle,” said Jim Kail, president of LHTC Broadband, which serves rural communities in Pennsylvania.“We’re not going to jeopardize our national security just for a buck. But there’s no proof of it,” Kail said. “We’re going to continue using it until somebody tells us differently.”The idea of a uniform standard echoes proposals from European countries that are loath to annoy China by singling out its leading technology company, said Lewis, of the Center for Strategic & International Studies in Washington.“It depends where you set the standards,” Lewis said in an interview. “If you set them high, it makes it hard to buy Huawei gear. If you set them low, it makes it easy to buy Huawei.”Equipment from the Shenzhen-based company is not secure, in part because equipment can take in software updates that create vulnerabilities, even after being judged to be benign when installed, Lewis said.The Huawei executives said it’s a “misconception” to think that complex networks can be manipulated remotely.\–With assistance from Bill Allison.To contact the reporter on this story: Todd Shields in Washington at tshields3@bloomberg.netTo contact the editors responsible for this story: Jon Morgan at jmorgan97@bloomberg.net, Elizabeth WassermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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