DCF Conclusion Study on Qualcomm (QCOM)
#3 Company within the Semiconductor SOXX ETF
Note: I have placed this DCF Conclusion Study for Qualcomm in a new tab for SOXX Semiconductor ETF names. This tab is also shown on my Substack home page.
Hey Everyone -
Hope you had a great weekend. I will issue two separate emails today - one for today’s Qualcomm DCF Conclusion study, the second to share a very brief comment on the market along with any new opportunities I’m eying. This email is focused on Qualcomm.
Okay, so by now, I hope we understand the value/power of the DCF Conclusion Study. For new readers, my purpose for constructing them and sharing my Conclusions is simple: I put my best attempt to understand the Bear/Base/Bull cases of heavily weighted companies within the indexes. These Bear/Base/Bull cases offer regions where I believe companies are prime for an advance or, potentially, overly hyped and may modestly correct lower.
I use these levels to then trade the index (ES/NQ/Dow), and on the investment side, buy and hold QQQ/DIA/SPY ETFs along with the stocks I am interested in at attractive levels.
Everyone has a different approach to the market. Mine involves understanding the companies that construct the index, and then making a forecast on how these individual companies will influence the index.
Some call this “Bottom-Up analysis”.
Now, given the outsized importance of Semiconductor companies in both the S&P 500 and Nasdaq-100, the SOXX Semiconductor ETF’s top companies are important to understand and assess.
I have done NVDA, AVGO, and AMD’s DCF Conclusion Studies, and members can view them here.
It’s very easy to understand. If I am interested in the company, I put a Limit Buy at/near the Bear Case (or Base Case if the current context is strong). If I want to manage exposure, I put a Limit Sell at/near the Bull Case OR a percentage that I am happy with (remember don’t be greedy). And then I wait.
It’s that simple. Really, it really is that simple.Now obviously, the work behind crafting DCF Conclusion Studies is the hard part.
Anyone can do a DCF. But Not everyone is thinking about the inputs that Wall Street is using in their models. I am, though.
That’s where I come in, to make it easy for you.
Today, I will discuss Qualcomm (QCOM), which is the #3 most important company in the SOXX ETF by weighting and an “AI” name that has shown considerable strength so far this year.
It has been hit rather hard by Sector Rotation into Dow names recently (hint, hint: we gave out lots of Dow names to go long for trading purposes).
So then, is there an area of interest where traders may dip back into QCOM? Let’s discuss the DCF findings.