Qualcomm Starts To Get Smart

Ever since Qualcomm (QCOM) upped its revenue estimate for the current quarter, the stock has moved back onto a positive track. The shares are up from $39.04 on March 5 to $43.68. But, the shares are still down over 12% during the last twelve months.

Investors have continued to fret about Qualcomm’s legal disputes with its largest customer, Nokia (NOK), and rival Broadcom (BRCM). Some of that is being cleared up now. Qualcomm and Broadcom dropped a number of the suits that they had pending against one another. According to The Associated Press: "The dismissed claims included allegations that Qualcomm violated six patents and Broadcom infringed on four patents, Qualcomm said. Each accused the other of misappropriating trade secrets."

Another fight between the two companies which is still pending resolution by the International Trade Commission is ongoing. But, Qualcomm appears to be more sensitive to the fact that Wall St. has been staying away from the shares during this period of protracted litigation because it left a number of issues about its revenue and intellectual properties rights open.

Broadcom’s (BRCM) stock is also down over the last year, by over 20%. It may need a break from time spent in the legal system just as much as its rival does.

Douglas A. McIntyre