Qualcomm - Looking for Re-EntryThe tech sector continues to get hammered and it brings down the good with the bad. Qualcomm' is still undervalued here in my opinion, and as we closed out our recent options contract for a profit we are looking for another re-entry.
Initially the bullish swing looked promising, but the recent bars are showing we likely retest the lows, between 54.0-56.0. What looked strong now looks like further weakness, but we are only at the beginning of a technological revolution with 5G and the IoT. New products and productivity create growth and Qualcomm' is positioned to take advantage of this with their new Snapdragon processor and 5G modem. Not only that Qualcomm' still has a cash hoard and pays a fat, juicy, delicious 4% dividend. We are using our options strategy to get paid to acquire a stock we do not mind owning at 60.0.
We are looking at several semi conductors as market sentiment continues to be dim on the tech sector. Fundamentally nothing has changed.
Disclosure: No current position but looking to sell PUTs in the near term.
