Stocks: (QCOM)(BRCM)(TXN)(NOK)(S)
Qualcomm’s stock is down, again. The company, which likes to fight with customers like Nokia, and litigate with competitors like Broadcom, said the earnings for the first quarter would be below forecasts. Part of the reason is litigation costs. Another excuse is a delayed order from Pantech in South Korea.
Faced with mounting competition from Texas Instruments and Broadcom, Qualcomm has done little to improve its fortures. Sprint’s decision to move to WiMax and away from Qualcomm’s CDMA chips is another blow to the company.
Qualcomm’s stock trades like a loser. It hit over $52 in May and now trades at just above $38. The reforecast of the quarter is not likely to help.
Qualcomm might reverse its poor fortures it it would get serious about bargaining with Nokia about an extension of the contracts between the two companies. Beating up on your largest customer has a way of hurting the stock price.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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