 Hey everyone, this is Dan. Welcome to another episode of my Quotcom videos. Quotcom has been up 5% in the last 20 days outperforming the semiconductor industry. It's up 56% in the last year. I own Quotcom shares and might be buying more in the next few days. Why am I so bullish about Quotcom? I will explain more in the next few minutes. First of all, let's look at how Quotcom has been trending compared to the market and compared to other semiconductor stocks. On this chart, it's showing the one year trend. The candlestick chart is Quotcom and the yellow line is SMH, the semiconductor ETF. And the blue line is QQQ, the purple line is SPY. As you can see, Quotcom in the last year went up by 56%, about the same as the overall semiconductor industry, SMH, and QQQ and SPY went up by 41% and 29%. Definitely, Quotcom was performing pretty well during the last year. This is the sixth one chart. It paints a very different picture. Quotcom here is on the bottom compared to the other three lines. What happened? That's after the earnings announcement. Quotcom's earnings disappointed the investors and particularly it had to do with the trade tension between US and China, as well as the litigation going on between the FTC and Quotcom. I'll talk more about them later on in the next few minutes. Since then, it went flat for a while and after the first quarter earnings announcement, it has recovered somewhat. And then they have a new CEO starting in July of this year. Overall, it's been holding pretty steady with the new CEO. If you look at the last 20 days, the picture is a lot better. Quotcom now is on top again compared to the other lines. Looks like there's quite a bit of recovery going on. And what's driving that? I'll talk more about it in the next few minutes. I think it's probably the opportunity to buy more shares now. Let me review my price target set in my July 17 video. Based on my calculations, I set a target to $160 a year to be reached by the end of October, 2021. And the all-time high was $167 accomplished earlier this year. On the day I make the forecast prior trading day, Friday, 716, the market closed at 139 for Quotcom. And as of the last trading day, which was 723 Friday, Quotcom closed at $144.88, almost $145. The price has certainly moved in the right direction approaching what I predicted. It still has a distance go yet. Let's review some of the fundamental information related to Quotcom. On this chart, we see that Quotcom has a very large piece of the market share for smartphone processors. They are second only to media tech. The good news is that Quotcom's processor can be more expensive and they are with higher performances than what's produced by media tech. And also Quotcom owns a lot of the 5G patents, every player in the cell phone market licenses from Quotcom, including MediaTek, Apple, Samsung, and Huawei. And of course, the Huawei market share has been shrinking because of US sanction. This is a chart showing the revenues, EPS and debt to equity ratio for Quotcom. As we can see in the last three quarters, Quotcom's revenues and EPS have been growing steadily. The debt to equity ratio has been steady. There is this dip here, which is the first quarter of 2020. And the main reason is because China sanction. And since then, looks at a company has adapted and has started to grow yet in terms of revenues and EPS. So again, this particular quarter has to do with the US sanction on Huawei. On April 28th, Quotcom announced their first quarter earnings and that was pretty good news because on a trailing 12 month basis, the revenue increased by 25% and the net income increased by 54%, which is very impressive. As a result, the stock price jumped the next day. However, then the semiconductor industry overall suffered from a dip starting about 20, 30 days ago and Quotcom went down with it. And since then, Quotcom has recovered a lot faster than overall semiconductor industry. We will spend more time looking at the charts again later on. The second quarter earnings announcement is coming up. It'll be announced after market on July 28th. I'll be watching the price movements very carefully in the next few days. And I'll be sending out Twitter messages to my subscribers when anything new develops. Back in 2020, Quotcom was very much involved in the big lawsuit brought on by the Federal Trade Commission. And as of August 11th, 2020, Quotcom won a round in this lawsuit brought on by the US government, which was good news. Better yet, as of March 17th of this year, the Wall Street Journal reported that the US government is unlikely to go to the Supreme Court to continue to pursue the lawsuit against Quotcom. In the meanwhile, Quotcom also have already settled lawsuit with Apple and a few other cell phone makers. And that's why all these lawsuits are mostly behind them, which is a very nice positive turn. This is from the most recent quarterly earnings report. What I did was I looked at the various segments where they derived the revenues, especially I looked at these two columns. The sixth month ended on March 28th, 2021 and March 29th, 2020 and compared to growth in revenues. As you can see, the handset market, which is the largest piece of the revenues grew 65%, pretty impressive, but the RFEF market segment, which is a radio frequency front end segment grew by 85%. Whereas the automotive segment grew by 42%, pretty impressive and IOT market, the Internet of Things market grew by 59%. So the RFEF market, radio frequency front end market with 85% growth is a very positive sign because everybody knows that Quotcom is very strong on 5G, they're very strong on cell phone processors and they're being getting a lot of revenue from licensing agreements on their patents, but this radio frequency front end is really a new segment of business that they've been growing. And from the numbers, we know that they are not resting on their laurels, they're not being complacent, they are actually developing, growing and growing very aggressively. That's why I'm very bullish about a company. Another good piece of news is that Quotcom recently acquired a company called Nuvia and Nuvia has a technology for designing PC processors, which Quotcom will use and the new processors will be rolled out in the second half of 2022. And from what I heard, the new processors from Quotcom will challenge those from Intel and AMD. So that's another new development from Quotcom that's very bullish. If you like what you've seen so far, I'd like to encourage you to click the like, subscribe and notification button so that you'll be notified when I publish my next video. It'll also encourage me to make more videos like this in the future. Thank you very much. Let's continue. If you wanna know more about the fundamentals of Quotcom, you might refer back to my February 21st video. It looks like this. In that video, I spent 30 minutes deep diving into a lot of details about Quotcom, especially I spent a lot of time talking about the lawsuits and patents and also the industry landscape, how the Quotcom processors compare to the processors from the other chip makers. First of all, they have more than 120 5G licensing agreements. That's the area of the traditional strength and the Snapdragon 800 series processors have been very successful. They have definitely the market leadership in 5G chipsets and they have the leadership in the gaming cell phone segment and they're growing the radio frequency front end segment very quickly. They recently settled quite a few major lawsuits and we see the continued increase in sales and earnings. I do believe that the dip in the Quotcom shares in the last six months was primarily due to the lawsuits that were hanging over the Macadabra cloud. Now that the lawsuits with FTC has been brought to an end and the lawsuits with Apple have been settled, I believe the cloud has been lifted and the investors are starting to come back to Quotcom and that's why we're seeing the start going up again, especially in the last 20 days and I expect that trend to continue. It's very interesting at this juncture to look at the charts. We'll get to that in the next few minutes. In the spirit of a full disclosure, I do have to mention that Quotcom has a couple of weaknesses. First of all, they're reliant on Samsung and Taiwan semiconductor to produce their processors because Quotcom doesn't have its own foundries. In that sense, Quotcom is no more disadvantaged than AMD or NVIDIA or MediaTek. They also are dependent on Taiwan semiconductor or other semiconductor foundries to produce the chips and Apple is supposed to be making its own 5G processors although that probably will not come to fruition until at least a couple of years from now. Let's quickly go over a few charts that I pulled from the better investing stock selection guide database. This chart shows the revenues for Quotcom from 2011 to the first quarter of 2021. As you can see, the revenue have been running pretty steady and recently actually there's been an uptake after they suffered a decrease primarily due to the sanction on China. And if you look at the industry, it's been pretty much trending the same way. EPS, there was a dip in 2018. Primarily there was a tax related maneuver because they were bringing back profit from overseas and they had to do a big tax write-off in 2018. So it wasn't really anything bad about a company. And if you look at the last three quarters, the EPS has been growing. Return on equity, extremely impressive. Definitely it took a big jump upward and the debt to capital ratio, they tend to be higher than the industry average, but the good news is that in the last few quarters, they've been getting that under control. And since Quotcom is making a lot of profit, generating a lot of cash, I'm not worried about the debt ratio. Let's look at what the analysts have been saying, especially any change that happened in the last seven days between the time I published the July 17th video and today. First of all, the closing price, it went from 139 to 144. It certainly went up in the last seven days. My target is still 160 at this point. Yahoo Business did not change anything, still a buy rating. Ruz Nevillea didn't change anything. Still, he looks not favorably on Quotcom. He's the only analyst in this table who doesn't look favorably on Quotcom. He gave him an overall rating of C. Tips ranks actually increased the average target from 172 to 174 and definitely increased the low target from 122 to 148. That's quite an increase. And CN Money increased the low target from 136 to 148. The Street.com also increased the target from 181 to 185. Overall, we see an uptake in the sentiments of these opinion drivers. And that's a bullish sign. And that's why I'll be watching the charts very carefully and I'll be buying more shares when the time is right. This is a quick review of my own valuation that I show in a July 17th video. And from these calculations that arrived to the conclusion of $160 a share to be reached by the end of October 2021, actually based on my assumption, Quotcom will have a peak ratio of no more than 0.8.9 and that's a very conservative peak ratio. That's why I'm comfortable with my target at this point. Most likely I'll revise the target up pretty soon when the price starts moving up. Let's look at the charts. This is the daily chart since May. We can see that it's been trending up this channel making higher highs and high lows. And in the last few days, it certainly moved up impressively and it's really hitting this upper boundary. Definitely it's at a resistance point now. If you look at the RSI ratio, it showed an overboard signal here around June 28th, 29th or so and sure enough, the price went down before it picked up again. DMI showed a buy signal about four days ago and MACD is finally turning bullish. This here is a little bit alarming because it's hitting that upper boundary of the trend line. If you look at the hourly chart, it's being definitely trending upward as well and we can see this historical resistance point at 146. This level was reached about seven, eight days ago and that's why when the price start approaching that point, it'll be a resistance as well as some other resistance levels that I'll be talking about later on. If you look at the RSI ratio, it's flashing an overboard signal. Actually in the past, when RSI hit this level, the price came down for a few days or at best went flat here and here also went flat for a few days then went down and that's why it's very possible that in the next few trading hours, the price might pull back a little bit before it starts marching up again. If you look at DMI, we have a bullish buy signal here on Friday and MACD actually already turned a little bit bearish. So on an hourly perspective, it's probably not very bullish for the next few trading hours. I'll be waiting until it starts turning bullish again before I buy more shares. Let's look at the support and resistance levels. Here I drew the Fibonacci diagram. I use this point in early March as a minimum and this point in January, the all-time high was the maximum and you can see that we are right at the Fibonacci 50% point. I like this diagram because it's actually correctly predicted some of the major price points and then at 23.6%, we see these price points and then also at the 38% level, we see these price points. That's why I believe this chart is pretty solid and based on what's on this chart, I see support at 141, which is the middle of the Bollinger Band, 20 days, simple moving average. The next level down will be 137, which is the lower Bollinger Band, the purple line and the next level down will be 135, 100 days, simple moving average, the blue dash line and the next level down is 132, this historical level and then the next level down will be 124, which was this minimum point. For resistance, the next level up is actually at the current level, which is a pretty strong resistance because it's the upper Bollinger Band as well as the Fibonacci 50% level. It'll be very important for the price to get above that level because before it can gather up in the momentum to move much higher. The next level up will be 150, which is Fibonacci 61% right here and then the next level up will be 157, which is Fibonacci 78% and then next level up will be this 167, Fibonacci 100%, which is the all-time high. Let me recap my price target, which is $160 to be achieved by the end of October and as of the last trading day, Qualcomm closed at $144.88. What are my strategies? I've been holding Qualcomm shares for the long term and I've been swing trading the rest of my shares. In the next few trading hours, we might be seeing a pullback because we're getting up to the resistance point now and I will wait for the price to break resistance or maybe pull back a little bit and then hit a support point and start going up again before I buy more shares. In general, I will buy when the price breaks major resistance or bounces back from a major support point or when positive news happens and I'll sell a major resistance point or whenever news happens so that I can lock in my short-term profit and I usually update my subscribers by way of Twitter messages when I buy or sell shares or when there's any significant news that happens. If you like what you've seen so far, I'd like to encourage you again to click the like, subscribe, and notification button. Also, at this point, I'd like to encourage you to subscribe to my Twitter account, which is DanMarketL. This is an example of what I tweeted. On July 13, I tweeted to my subscribers that I just bought more BioNTech shares on the dip and since then, the price of BioNTech has gone up substantially and I also explained why I did that. As usual, I will very much welcome your comments, questions, and suggestions that I can send to my Twitter account as well as by way of my YouTube channel. I'd like to remind you at this point that I'm not a financial advisor. I share my stop trading strategies for educational purpose only. You should make your own decision when you want to buy or sell stocks and you should definitely consult with your financial advisors before you do so. This wraps up my video for now. I will chat with you again in the next few days. In the meanwhile, I'd like to wish you the very best of luck with your financial investments.