<center>https://mentormarket.io/rolland/wp-content/uploads/sites/5/2019/01/qualcomm.jpeg</center> <br/><p>Xilinix, Teradyne, Lam Research and Texas Instruments all beat earnings expectations in their reports on Wednesday, sending the chip sector higher by the end of the day.&nbsp; The only outlier was Qualcomm which was negative on the day.</p>
<p>Kerrisdale Capital, is shorting Qualcomm shares and released a research report stating that Qualcomm is "teetering on the brink of disaster" and that its unique business model is "living on borrowed time."</p>
<p>The FTC sued Qualcomm for violated FRAND {fair, reasonable, and non-discriminatory} rules, which states that companies that become members of the rule structure must license their products to competitors.</p>
<img src="https://mentormarket.io/rolland/wp-content/uploads/sites/5/2019/01/image-208.png" alt="" class="wp-image-3346" />
<p>Apple filed a lawsuit two years ago again Qualcomm and Apple has tried to license Qualcomm tech under FRAND terms, but were unsuccessful.  Tim Cook said, companies that hold standards-essential patents (SEPs) are required to license that intellectual property on FRAND terms, but Qualcomm doesn’t do that.</p>
<p>The U.S. could rule in favor of the FTC and against Qualcomm, which would mean a huge hit to Qualcomm's revenues, and therefore earnings.  So what does this mean for Qualcomm’s stock price, lets go to the monthly charts.</p>
<p>Qualcomm had been sideways for the past four years ranging from about $40 to $80.</p>
<img src="https://mentormarket.io/rolland/wp-content/uploads/sites/5/2019/01/image-210-1024x481.png" alt="" class="wp-image-3349" />
<p>But price is at a key long term support / resistance line</p>
<img src="https://mentormarket.io/rolland/wp-content/uploads/sites/5/2019/01/image-211-1024x481.png" alt="" class="wp-image-3350" />
<p>And price is on the verge of testing the long term up trendline.</p>
<img src="https://mentormarket.io/rolland/wp-content/uploads/sites/5/2019/01/image-212-1024x480.png" alt="" class="wp-image-3351" />
<p>In another article I read, Kerrisdale Capital thinks if Qualcomm loses the lawsuit, the stock could fall by 50%.  And you know what, they aren’t far off because if price breaks below the support line and up trendline, they the only price I see Qualcomm selling at a discount is at the monthly demand at $23.</p>
<img src="https://mentormarket.io/rolland/wp-content/uploads/sites/5/2019/01/image-213-1024x480.png" alt="" class="wp-image-3352" />
<p>This post is my personal
opinion. I’m not a financial advisor, this isn't financial advise. Do your own
research before making investment decisions.</p>
  
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<center><em>Published by <a href="https://mentormarket.io/rolland">Rolland Thomas</a>
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