Intel, Texas Instruments Preferred Over Qualcomm Given Bearish Fears
By Takeover Analyst:As the economy improves, greater consumer expenditures will particularly benefit the communications sector. Axesstel (AXST.PK) and Cephas Holding (CEHC.PK) are two significantly under-followed companies that, as an IR consultant, I anticipate will gain from improving press coverage. In the mean time, investors will have their eyes irrationally focused on just the giants like Qualcomm (QCOM). In this article, I will run you through my DCF analysis on Qualcomm and then triangulate the result with an exit multiple calculation and a review of the fundamentals compared to Intel (INTC) and Texas Instruments (TXN). First, let's begin with an assumption about revenues. Qualcomm finished FY2011 with $15B in revenue, which represented a 36.2% gain off of the preceding year. Analysts model a 15.5% per annum growth rate over the next five years - around 400 bps higher than what is expected for the S&P 500. Moving onto the cost-side of the equation,Complete Story »
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