1. Technology Group Nick BonDurant Dan Fullam Derek Pimentel Joe Yu

2. Viacom Sell Bought Viacom on April 29th, 2010 at $39.96
Today’s Market value is $64.25
Gain %
We want to realize our profits
It’s growth drivers are dead
Jersey Shore, Nickelodeon

3. Beat the S&P by 30 percent during the three year span

4. Qualcomm Incorporated
Designs, develops, manufactures, and markets digital telecommunications products and services
Operates primarily in China, South Korea, Taiwan, and the United States
Produces chips for Apple, Samsung, and HTC smartphones

5. Chipsets
Snapdragon: Deliver best-in-class technologies for mobile devices on a single chip
Gobi: 3G and 4G LTE connections for many types of wireless devices
Hy-Fi: Hybrid network combines Wi-Fi, Powerline, and Ethernet connectivity
Reference Designs: Streamline the rapid market intro of smartphones at lower development costs
Qualcomm® Snapdragon™
Snapdragon Processors deliver best-in-class technologies for mobile devices all on a single chip.
Qualcomm® Gobi™
Fast, always-on 3G and 4G LTE connections for many types of wireless devices.
Qualcomm® IZat™
Accurate, power-efficient hybrid location technology pinpoints locations, indoors and out.
Qualcomm® Hy-Fi™
Hybrid network combines Wi-Fi, Powerline and Ethernet connectivity.
Qualcomm® ETHOS™
Ethernet solutions with advanced features to make your networks and devices smarter and leaner.
Qualcomm® VIVE™
802.11ac solutions, which deliver 3 times greater performance to bring your digital media to life.
Qualcomm® Reference Designs
Streamline the rapid market introduction of smartphones at lower development costs.
FSM® Platform
Platform providing a simple and low cost path for 3G femtocell development.

6. Technologies
2net: Wireless health platform that captures data from wireless medical devices
3G & 4G wireless: Exploring the limits of wireless technologies and creating next-generation mobile technologies
LTE Advanced: Boosting wireless data and enhancing the mobile experience
2net™
Wireless health platform that captures data from wireless medical devices.
3G & 4G Wireless
Exploring the limits of wireless technologies and creating next-generation mobile technologies.
AllJoyn™
Peer-to-peer technology enabling ad hoc, proximity-based communication.
HSPA+ Advanced
An evolution of HSPA wireless technology, enhancing speed and capacity.
LTE Advanced
Boosting wireless data and enhancing the mobile experience.
Skifta®
Media shifting service that streams media from smartphones to other devices.
Small Cells
Cost-effective solution to increase coverage and capacity with existing devices.
Qualcomm® Vuforia™
Superimposing virtual content on top of a camera’s view of the real world.
Yagatta™
Enabling apps for instant voice and data communications.

7. Summary Today’s close: $67.04 Market Cap: $115.18B Beta: 1.23
P/E: 17.7
EPS: 3.79
Dividend Yield: 1.5%
52 Week Range: $ $68.87
Next Earnings Date: 4/24/2013

8. Strengths
Attractively priced versus competitors (Broadcom, Texas Instruments)
Strong market position, focus on research and development
Superior financial performance versus competitors
Carries almost no debt ($31mn) with a very strong balance sheet (above average free cash flows)
Solid price support at 250-day simple moving average
According to Thomson One, of the total 43 stock ratings, there are 13 strong buys and 24 buys (4 holds, 1 underperform, 1 sell)
given Qualcomm's superior financial performance in almost every aspect, I believe the stock should reasonably command a premium valuation over the peer-average level
-current valuations at 10.4x forward EBITDA (next 12 months) and 14.6x forward EPS (next 12 months) together represent an average discount of 4.8% to the same average trading multiples for the peers, suggesting an undervaluation on a relative basis. Further, Qualcomm stock's PEG ratio at 0.98x is 39.5% below the peer-average PEG at 1.62x, again indicating a cheap valuation (see chart above)
-Market capitalization is on average 292.6% higher than competitors
Revenue CAGR is on average 235.3% higher than competitors
Gross margin is on average 26.9% higher than competitors

10. 12 Month moving average

11. TTM PE

12. Weaknesses
The mobile/tech industry is always evolving, and a small change in technology could hurt Qualcomm’s financial prowess
Weak presence in non-CDMA technology markets
Decelerating EPS growth projections to 10-11% for CY14 & CY15

13. Opportunities
Turkcell will begin to sell a locally produced smartphone meant to be a cheaper alternative to Apple and Samsung smartphones in 2013 using QCOM chips
Qualcomm launched their high-end (600, 800) Snapdragon chips last month, and newly introduced their 200 & 400 low-end chips to position itself to overtake China Mobile’s potentially huge 3G market
Growing smartphone demand in emerging markets such as India and Brazil are seeing strong growth and expected to be top 5 by 2016 according to IDC
600 million 2G subscribers on China Mobile's network, Qualcomm's new quad-core chipsets could help it ride the huge Chinese demand for 3G smartphones in the coming years.

14. Threats
The competition to gain traction in emerging markets is fierce in the mobile industry
Device ASPs in the royalty business may be peaking in 2013 due to the shift to emerging markets
Unfavorable license negotiations, Patent litigations
Global economic conditions

15. Income Statement

16. Balance Sheet

17. Cash flow & Ratios

18. Key Takeaways Buy full position at current price: $67.04
Historical PE (5 years)
20.5x
Current PE
17.7x
2014 PE
16x
2014 EPS
$4.9-$5.1
Target Price (12 month)
$80
Buy full position at current price: $67.04

19. Exit strategy
1 year price target of $80
Review in one year