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Company name QUALCOMM, Inc.
Stock ticker QCOM
Live stock price [stckqut]QCOM[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $73.37
Target stock price (averages with growth) $101.12
Target stock price (averages with no growth) $86.12
Target stock price (manual assumptions) $72.15

The following company description is from Google Finance: http://www.google.com/finance?q=qcom

QUALCOMM Incorporated (Qualcomm), incorporated on August 15, 1991, is engaged in design, manufacture, have manufactured on its behalf and market digital communications products and services based on code division multiple access (CDMA), Orthogonal Frequency Division Multiplexing (OFDMA) and other technologies. The Company operates in four segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); Qualcomm Wireless & Internet (QWI), and Qualcomm Strategic Initiatives (QSI). The Company develops and supply integrated circuits and system software based on CDMA, OFDMA and other technologies for uses in voice and data communications, networking, application processing, multimedia and global positioning system products. In November 2012, the Company acquired certain assets of EPOS Development, Ltd. (EPOS), developer of ultrasound technologies for input solutions, including pen, stylus and gesture recognition.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in this stock.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

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While you are enjoying the beginning of summer with a 3-day weekend. Please do not forget why you are not working today.

Remember those who served. All gave some and some gave all they had.

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This is a message to my StockTwits followers that is prompted by StockTwits’ change in policy that went into effect today, 3/1/2013.

To date, I have been communicating to my StockTwits followers primarily via Twitter. If I put a dollar ($) symbol in front of the stock symbol on Twitter, StockTwits would pick up that change and repost the tweet on StockTwits. StockTwits is a great service that is focused on stock information in its community. As of today, this linking between the Twitter and StockTwits seems to be turned off.

I have about 250 followers on StockTwits and over 15,000 followers on Twitter. I will try to cross-pollinate my comments across the two services but my first priority has to be Twitter. If you are following me on StockTwits and NOT following me on Twitter, you may wish to follow me on Twitter. I value my followers on StockTwits greatly and I will do my best to cross-pollinate posts but I am sure that some conversations will be lost.

My Twitter page is https://twitter.com/ConfidentInvest.

Here is the announcement that I received today from StockTwits:

Dear StockTwits Member,

This email contains an important product announcement that impacts your StockTwits account.

Effective today, March 1, you will no longer be able to post to your StockTwits account via Twitter by including a $TICKER or $$ in your message. All messages you want to share on StockTwits need to be posted directly to StockTwits at StockTwits.com, using our browser extensions or API partners.

We continue to work with Twitter in other ways, you can still automatically send messages you share on StockTwits to your linked Twitter account (or your linked Facebook and LinkedIn accounts).

Much has been written over the last several months about how Twitter has changed their developer rules and, like many other developers, these new rules have forced us to make changes in order to continue to deliver a great experience to you and all of our users.

We know this changes the way some of our members use our service – since we announced this change earlier this year we have helped many members set up tools like our Chrome or Firefox Browser Extensions or our HootSuite plug in to minimize any impact on the way they work, while ensuring their best stock and market ideas continue to be seen on StockTwits.

If you have any questions or we can help you please email us at support@stocktwits.com or contact any team member on StockTwits.

Sincerely,

StockTwits

 

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Company name Neogen Corporation
Stock ticker NEOG
Live stock price [stckqut]NEOG[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Poor
P/E growth Good
EBIT growth Fair

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $72.52
Target stock price (averages with growth) $92.51
Target stock price (averages with no growth) $59.72
Target stock price (manual assumptions) $64.5

The following company description is from Google Finance: http://www.google.com/finance?q=neog

Neogen Corporation (Neogen), together with its subsidiaries, develops, manufactures, and markets a diverse line of products dedicated to food and animal safety. It is engaged in developing and marketing test kits that provide food safety solutions. The Company’s food safety segment consists primarily of diagnostic test kits and complementary products (dehydrated culture media) sold to food producers and processors to detect dangerous and/or unintended substances in human food and animal feed, such as foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, drug residues, pesticide residues and general sanitation concerns. These products are marketed in North America, the United Kingdom and other parts of Europe, Mexico and Brazil and by distributors through the rest of the world. In October 2012, it acquired the stock of Macleod Pharmaceuticals. In January 2013, the Company acquired the assets of Scidera Genomics, LLC.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

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Most financial articles, financial writers, and stock theorists will include some type of phrase that past performance does not equate to future performance. Basically, just because we did well or the stock did well (or poorly) in the past that doesn’t mean that the same will be true in the future.

This is great advice even if it is hogwash. It reminds me of noise that was written by lawyers. Yes, I have similar phrasing on my site and in my book. Let’s be truly honest though – the past is the best way for us to predict the future. In a few weeks, I will be publishing some historic back testing of my investing strategy and I have already published an example of IBM. There is simply no better way to understand how a strategy worked in the past as to how it will do in the future. It won’t guarantee success but what test is more reliable?

Let’s talk about a few examples that you probably can relate to that have nothing to do with stocks.

If you are hiring a new person at your company then you will inquire about that person’s past. There are many questions that you will ask to ascertain if that person has the traits to be successful in the future. Most of those questions are about what the person did in the past that would give you some inkling as to what they will do in the future at your company. You might ask, “How did they handle this type of situation?” or “Give an example when this happened.” These are valid interview questions that provide some idea of past performance and how it would result in future performance.

In the US, we just finished a Presidential election. While US politics is pretty ugly and vicious, part of the conversation was what the candidates did in the past which gives some voters some idea of what they will do in the future. Some voters don’t use this information to make an informed decision but some will use it. It is valid to say that a candidate supported a certain law or effort which means they are likely to act a certain way on a certain type of legislation.

If a stock is trading in a range between $7 and $10, you would not expect it to go to $20 in the next 90 days without some instigator to change its behavior. Similarly, if a stock has been growing at 20% per year, you would not expect it to drop 50% in the next 4 weeks unless there was a particularly bad piece of news affecting the company’s health.

Any good analysis of a stock needs to have some historical perspective, For this site (and my book) I look at 10 years worth of data. I weight the most recent years more heavily than years 8, 9 and 10. Sometimes that means that I ignore the hot company that went public last month but that is okay. I want to be confident that the company I invest in has a track record of success. I look for good past performance because anything else is just a guess. I don’t guess with my money and I don’t think you should guess with yours.