Qualcomm Inc (QCOM)

[khemara_qc]

Manager likes Qualcomm, Williams-Sonoma
November 10, 2005 03:45 PM ET
Michael Cuggino's defensive strategy leads to investments in bonds, metals and aggressive growth stocks.


http://moneycentral.msn.com/content/CNBCTV/Articles/StockPicks/P135736.asp

View a Quick Analysis of these stocks

Diversity provides protection, according to Michael Cuggino, whose Permanent Portfolio (PRPFX) fund offers a possible model for investor diversification.

Cuggino invests fixed percentages in gold, silver, Swiss government bonds, aggressive growth stocks and Treasurys. The fund has made money every year since 1994 and is up an average of 11.8% a year over the past five years.

Cuggino recommended the following stocks during an appearance Wednesday on CNBC's "Squawk Box." Get additional details below, and use the CNBC.com on MSN tools, including StockScouter, to learn more about each company. And keep up with the Street with the latest Market Dispatch. Start investing with $100.
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Quick Analysis

QUALCOMM, Inc.

• The company is a leading developer of wireless-chip technology. It pioneered CDMA (code division multiple access) technology used in cell phones and other wireless communications equipment.
• As the CDMA patent holder, Qualcomm derives royalties from licensing its technology to cell phone makers. Technology licensing accounts for one-third of company sales.
• Qualcomm is well positioned to benefit in the ongoing shift to newer 3G or third-generation cell-phone technologies that can transmit data at higher speeds, Cuggino said.
• The stock is not cheap, Cuggino said, but investors should pounce if the price slips. “But as a growth story going forward, (Qualcomm) is a good place to be,” he said.
• Qualcomm insiders have been heavy sellers of company shares. Insiders have executed about 100 sales of Qualcomm stock in the past six months.
• According to Zacks, the average brokerage recommendation for Qualcomm is moderate buy.
• Qualcomm on Nov. 10 was rated 10 out of 10 on StockScouter.