10 Tech Giants to Buy Now Shares of companies such as IBM, Nokia and Microsoft have taken a hit along with the rest of the market, but they don't deserve to be this cheap. Other tech stocks to consider include Apple, Cisco, Google, HP, Intel, Oracle and Qualcomm. Ten Tech Giants to Buy Now - Kiplinger.com
New Life for Grocery Store Standbys Innovation is Pinnacle's lifeblood. The N.J.-based company -- which so far owns or licenses more than a dozen food brands -- specializes in acquiring venerable, but stagnant, brand names in need of TLC. It then works to breathe new life into them with updated formulations, new products, improved packaging, added convenience and smart marketing. Among the brands in Pinnacle's cub bard are Duncan Hines, Lender's Bagels, Log Cabin, Hungry Man, Mrs. Butterworth, Aunt Jemima, Swanson and more. Pinnacle gives new life to old standbys - USATODAY.com
By Alex Kolb, analyst, Zacks Investment Research Shares of QUALCOMM Inc. (NASDAQ:QCOM) are trading about 15% higher than earlier this month, when the company was previously featured. Also, as was the case when previously featured, QCOM continues to trade close to a 52-week high. Wall Street forecasts are also higher now. Current earnings estimates of $1.95 per share for the year ending September 2008 are last month's $1.91.
The company posted a strong fiscal third quarter, noting that it delivered record revenues that were up by 19 % year-over-year. QCOM's third-quarter (GAAP) net income also increased year-over-year.
The Zacks Rank #1 (Strong Buy) company continues to offer a ROE of 20%, squashing the industry average of 2%. Its yield of 1.2% stands out as the company operates in an industry that virtually pays no dividend. QCOM's earnings per share are expected to grow by 19% over the next 3 – 5 years, versus the industry average of 17%. Read our Jul 10, 2008 analysis.
If you were getting used to the bulls running the show, the bears whispers of "Remember us?" turned much louder today. If you were looking for the day we finally got profit taking after a monster rise in financial stocks, it came. Weak housing data was said to be one of the key issues for the market, but the more than 400,000 weekly jobless claims filed was much worse than expected. Oil didn't skyrocket but it did at least catch a bid today and oil was back up to over $125.00 per barrel late in the day. If you want a big figure, PIMCO's Bill Gross said that total financial writedowns could see $1 Trillion.
Amazon.com, Inc. (NASDAQ: AMZN) saw a mega-surge after the market decided that its above estimate earnings and somewhat conservative guidance was to match the environment rather than to be any red flag. Shares were up a sharp in today's final minutes.
Qualcomm (NASDAQ: QCOM) is recently up $8.29 to $53.12. QCOM raised its 2008 revenue & EPS outlook. QCOM and Nokia (NYSE: NOK) said they agreed to end their legal disagreements. QCOM call option volume of 99,545 contracts compares to put volume of 48,346 contracts. QCOM August option implied volatility of 39 is near its 26-week average according to Track Data, suggesting non-directional price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
No matter how good Qualcomm (NASDAQ: QCOM)'s earnings have been over the last two years, its stock has been capped to some extent by its long legal battle with its largest customer, Nokia (NYSE: NOK). The dispute is over now, news which is probably better for Qualcomm than Nokia. The legal threat hanging over the cell phone chip maker firm is gone.
According toThe Wall Street Journal, "Under the settlement, Nokia will withdraw that complaint as well as other litigation. Besides getting licenses to Qualcomm patents, Nokia said it will assign ownership of a number of its patents to Qualcomm. The pact not only covers patents used in current cellphone networks but also emerging technologies that could succeed them -- including WiMax and LTE, which stands for long-term evolution."
The news sent Qualcomm's stock up over 18%.
Nokia had disputed the fees Qualcomm charged for its chips and the license fees for its technology. Qualcomm can now get substantial payments from its former nemesis. If Qualcomm had lost its battle, its long-term income could have been cut sharply. Nokia is getting access to patents, but it will still be making payments to the chip company.
The trouble has kept Qualcomm's shares from trading above the $52 level that they hit in mid-2006. Investors can expect that the ceiling on the stock will now be gone.
Douglas A. McIntyre is an editor at 247wallst.com.
Stock futures were mixed Thursday morning, indicating a similar start to U.S. stocks. While the S&P 500 showed weakness ahead of housing data to be released at 10:00 a.m. EDT, the Nasdaq composite was slightly positive after Amazon.com reported strong earnings Wednesday. Investors also braced for Ford's earnings, which indeed posted double the estimated loss. The earnings wave continues. Meanwhile, oil prices edged a little higher, but remained around $124 a barrel.
Starting with Ford (NYSE: F) then, the world's third largest automaker posted (after items) a loss of $1.38 billion, or 62 cents. Analysts surveyed by Bloomberg expected Ford to report a loss of 28 cents a share. The headlines scream of a loss of $8.7 billion though, which includes $8 billion in pretax writedowns of North American plants and assets of Ford Motor Credit Co. Ford also said it will convert three truck factories to produce small cars as rising gasoline prices sap U.S. truck sales. Dow Chemical (NYSE: DOW) couldn't manage to offset higher costs of energy and raw materials with the recent price increases it announced, and posted a 27% decrease in profit for the period. Net income was $762 million, or 81 cents a share. Revenue is up 23% to $16.38 billion. Earnings were below analyst expectation according to Thomson Financial of 85 cents per share, but better than the sales estimates of $14.9 billion. DOW shares are dropping some 9.5% in premarket trading as the company said it expects the economy to weaken.
Amazon.com Inc. (NASDAQ: AMZN) posted strong earnings Wednesday after the close, proving its growth days aren't over in this weakened economy hurt by high gas prices. Not only did it beat estimates -- with a 41% climb in revenue to $4.06 billion compared to $3.96 expected, and EPS of 37 cents compared to expectations of 26 cents -- but it also raised its full-year revenue projections. AMZN shares are climbing about 6.5% in premarket trading.
"Yes, the market is declining. And, yes, it is often scary to buy during such market periods. Nevertheless, there's an adage that 'the best time to invest was yesterday; the next best time is today'.
"Indeed, countless studies have shown that the best thing any investor can do is invest early and often. That is the best way to maximize the power of time, and time will have the greatest bearing on your investment results.
"Thus, investors need to be willing to buy even when it is difficult to do so, or should I so especially when it is difficult to do so. The reason is that we usually are reluctant to buy stocks during market declines. Yet, if you think about it, declining markets should be precisely the time we buy since stocks are cheaper.
"The stock has demonstrated impressive price performance throughout the market volatility in recent months, rising to its highest level in a year above $50 before pulling back.
Qualcomm (NASDAQ: QCOM) closed at $48.33 Friday. QCOM makes chips for handsets and licenses technology to handset makers. QCOM is expected to report Q3 EPS on July 23. QCOM August option implied volatility of 44 is above its 26-week average of 38 according to Track Data, suggesting larger price movement.
MOST NOTEWORTHY: SRS Labs, Tennant and Entergy were today's noteworthy initiations:
B. Riley initiated SRS Labs (NASDAQ: SRSL) with a Neutral rating and $7 target. The firm believes expectations for Q2 and FY08 may be high as the company ramps marketing spend in the face of difficult macro economic conditions.
Jefferies assumed Tennant (NYSE: TNC) with a Hold rating and $32 target which reflects their macro economic outlook for end markets in North America and Western Europe.
Wachovia is positive on Entergy's (NYSE: ETR) shareholder-friendly management, strong financial position, and leverage to favorable wholesale power market trends. Shares were initiated with an Outperform rating.
OTHER INITIATIONS:
ThinkPanmure initiated Knot Inc. (NASDAQ: KNOT) with a Source of Funds rating and $8 target.
Qualcomm (NASDAQ: QCOM) was started with a Buy rating and $61 target at Citigroup.
HSBC assumed Spreadtrum (NASDAQ: SPRD) with an Overweight rating.
Goldman Sachs has put a $285 price target on Potash (NYSE:POT) because of the "benefits of strong fundamentals in the fertilizer market", according to the AP.
Merrill Lynch upgraded Wachovia (NYSE:WB) to "neutral" from "underperform", according toBriefing.com. The news service also reports that Citigroup has initated Qualcomm (NASDAQ:QCOM) with a "buy".
Intuit (NASDAQ:INTU) downgraded to Sell from Neutral at Goldman Sachs, according to24/7 Wall St., The financial site also reports that Nokia (NYSE: NOK) has a lowered price target but maintained Buy at Merrill Lynch
Qualcomm (NASDAQ: QCOM) designs, develops, manufactures and markets digital wireless telecommunications products and services based primarily on its Code Division Multiple Access (CDMA) technology. The firm supplies integrated circuits and system software for voice and data communications, multimedia devices and global positioning products. It also licenses CDMA semiconductor technology and software to more than 100 other equipment and cell phone makers. The Qualcomm Ventures unit invests in wireless communications and Internet startups. Major competitors include Nokia (NYSE: NOK) and Texas Instruments (NYSE: TXN).
The company pleased investors last week, when it guided fiscal Q3 EPS to 54-55 cents (50-52 cents prior, 52 cent consensus) and Q3 revenues to points slightly above $2.7 billion ($2.5-$2.7B prior, $2.61B consensus). Management also guided FY08 EPS to $2.09-$2.13 ($2.04-$2.09 prior, $2.11 consensus). The updated guidance reflected greater than expected demand for Qualcomm's 1xEV-DO and HSPA chipsets, as well as revenues from advanced 3G network upgrades. Jefferies subsequently reiterated its "buy" rating on the shares and boosted its price target to $54.
"In 1999, Qualcomm (NASDAQ: QCOM) went from less than $4 to over $92; but the party came to a screeching halt over the next three years," recalls Chuck Carlson, an expert on stocks that offer dividend reinvestment plans.
In The DRIP Investor, he explains, "The stock has been stuck in a trading range for the last four years. But that looks like it is about to end, as it recently moved to a new 52-week high and is setting its sites on its 2006 high of $53."
"Strong earnings and greater visibility on some litigation matters should pave the way for solid gains in the second half of 2008. Technology stocks should remain among the market's leading sectors, and Qualcomm offers an excellent play in the group.
"Qualcomm generates 90% of its revenue from cell-phone chipsets and license royalties paid by users of its intellectual property. Qualcomm's chips are used in mobile phones and wireless infrastructures around the globe.
"Growth here should remain strong as networks convert to third-generation technology and emerging markets expand and upgrade their infrastructure.
MOST NOTEWORTHY: DaVita, Dr. Pepper Snapple Group and Ascent Solar were today's noteworthy initiations:
Suntrust expects DaVita's (NYSE: DVA) dominant market share to help in commercial contract negotiations and they view potential Medicare reimbursement changes as more of an opportunity than a risk. The firm started shares with a Buy rating and $62 target.
JP Morgan initiated Dr. Pepper Snapple (NYSE: DPS) with an Underweight rating and expects declining free cash flow in 2008, which they note would be the third straight year.
Ascent Solar (NASDAQ: ASTI) was assumed with a Hold rating and $14 target at Jefferies. The firm sees high development risk with the company just beginning to operate its pilot line and commencing initial planning for its first 30 MW commercial line.
OTHER INITIATIONS:
Stanford initiated ViroPharma (NASDAQ: VPHM) with a Buy rating and $13 target.
Goldman assumed Research in Motion (NASDAQ: RIMM) and Qualcomm (NASDAQ: QCOM) with Buy ratings and targets of $163 and $55, respectively.
Blue Nile (NASDAQ: NILE) was initiated at Thomas Weisel with an Underweight rating and $44 target.
Qualcomm
Stock futures were mixed Thursday morning, indicating a similar start to U.S. stocks. While the S&P 500 showed weakness ahead of housing data to be released at 10:00 a.m. EDT, the Nasdaq composite was slightly positive after Amazon.com reported strong earnings Wednesday. Investors also braced for Ford's earnings, which indeed posted double the estimated loss. The 
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Qualcomm
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