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In my last column, I told you about Qualcomm Inc. (Nasdaq: QCOM) – the big-cap firm that helped pioneer wireless communications and is perfectly poised to benefit from continued smartphone adoption around the world.
Now I want to run Qualcomm through the five "filters" of my tech investing strategy and see how QCOM stacks up.
The San Diego-based company makes the guts of numerous manufacturers' phones and therefore isn't vulnerable to the whims of the mainstream marketplace's fashions and trends.
Qualcomm expects to see a global total of 7 billion smartphones in use by the end of 2017. By then, this world leader in wireless semiconductor sales expects smartphones to account for 80% of handset sales, compared with roughly 55% last year.
With a market cap of $135 billion, QCOM trades at $80 a share. So far this year, it has more than doubled the overall market's returns, 9% for Qualcomm compared to 3.5% for the Standard & Poor's 500 Index.
I believe it will continue to outperform the market and make money for investors savvy enough to look beyond shortsighted pundits' quick-trigger proclamations of the death of the smartphone.
And now I'm going to show you how by applying the five rules that make up my tech investing strategy.
Let's take a look…
The 5 Rules of My Tech Investing Strategy
Rule No. 1 – Great Companies Have Great Operations: I look for excellent leaders who know how to build top-notch franchises. Though just named CEO in early March, Steve Mollenkopfhas played a major role in making Qualcomm a global leader in the Mobile Revolution.
A 20-year company veteran, Mollenkopf previously served as chief operating officer. In that role, he helped make the firm the world leader in wireless chipsets and spearheaded the Atheros acquisition. Besides being a leader, he's also a tech guy who holds seven wireless patents.
My next rule is all about turning down the volume on meaningless Wall Street "noise"…
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.