 Hey everyone, this is Dan with another episode of my Quotcom videos. I refreshed my fundamental analysis of Quotcom and found the company to be as strong as ever. I believe there might be a good opportunity to buy in the next few days. Let's get into the details. In my last Quotcom video, my forecast was that the share price will be between $160 and $180 by the end of 2021. The all-time high was at $167.90 at the time I made the prediction. The share price was at $129. Today the prices at $139 is certainly moved in the direction of how I predicted, however is still quite a distance from my target of $160 to $180. In light of what I found with my new analysis, will I have a new price target for Quotcom? I'll get into that in the next few minutes. Let's look at how the Quotcom market share has been trending in the cell phone market. This is the chart showing the last five quarters. This slide here, the light blue color slide is Quotcom. As you can see, they had a small decrease in market share between the first quarter and second quarter of 2020. Since then, the market share has been pretty much the same. And in the meanwhile, MediaTek has a very significant increase in market share. Apple has some increase in market share. And as we might expect, Huawei's market share is shrinking primarily because of the US sanction and Samsung's market share has been shrinking a little bit also. This is a piece of news from CNBC saying that Quotcom's trip market share in China was hurt because of the US sanction against China. In the meanwhile, MediaTek, which is a Taiwanese company, their business has been growing in China and all around the world. Although they make cell phone processors that are usually less expensive than Quotcom's. Nevertheless, the market share is definitely growing. In the meanwhile, way back in February 2021, Quotcom's share took a deep drop to the tune of 7% just one day, mainly because supposedly the earnings disappointed the analysts. But I don't think that was a real problem. I think the real problem was concerned about the China sanction. Because this particular video is devoted to fundamental analysis, I'm not going to show a lot of charts. I'll just show this one chart to help put things into context. This is the movement of Quotcom in the last year, the candlestick chart and the yellow line is a semiconductor EDF SMH. The purple line is SPY reflecting the movement of the S&P 500. The blue line is QQQ reflecting the movement of NASDAQ 100. As you can see in the last year, Quotcom went up by almost 50%, whereas the broad market went up by only 34%. So Quotcom all performed the broad market by about 15%. And Quotcom was outperforming even the general semiconductor segment until it took a big drop here in the beginning of February. And that was because of the quarterly announcement that we just talked about a few seconds ago. And then comes the end of April, beginning of May, they had another quarterly earnings and that particular one was actually quite positive. See the stock price actually jumped up. But after that, because the entire semiconductor market here is indicated by the yellow line, the SMH EDF went down here, and then Quotcom went with the semiconductor market. And since then it's been running somewhat parallel to that. And actually in the last few days, the semiconductor market dipped, but Quotcom didn't quite drop as much. And by the way, here, this is when they have the new CEO, which is really a person that's already been with the company for many, many years. So things are pretty stable. And the Quotcom share price has been climbing up fairly steadily since the beginning of May. And that's why I believe with the good fundamentals and nice momentum here, as long as the broad market is holding up, this might be a good opportunity to buy more Quotcom shares. Let's get into the fundamentals. This is a chart showing the revenues since 2016, as well as earning per share and debt to equity ratio. This dip here, even though it looks pretty dramatic on the chart, but it's really a dip from about $23 billion to about $20 billion. So it's about a 15% drop. I would say most likely it's primarily related to the Chinese market, EPS, a drop. But then since then, things have stabilized and the revenues have steadily climbed back up since then, and same with the EPS. And that's a very positive trend in the last three quarters. Debt to equity ratio is pretty much very stable, so that's the news also. On April 28th, Quotcom announced their quarterly earnings, and the stock price rose as much as 6% that day. Why? Because the revenue increased by 25%. That's the 12 month period versus the 2020 annual revenues. And then likewise, net income also increased significantly by 54%. That's really very awesome. There are a few other additional news items that are favorable to Quotcom recently. The US government has been suing Quotcom for antitrust issues. First of all, a lower court rule in favor of the US government, and the higher court overturned that and rooting favor of Quotcom. So that was good news as of August 11, 2020. And most recently on March 17, 2021, the Wall Street Journal reported that the US antitrust officials are unlikely to file Supreme Court appeal in Quotcom case. So if the US government is not going to go after Quotcom anymore on antitrust matters, that's certainly a great positive development for Quotcom. Recently as of July 3rd, it was announced that Quotcom is going to develop their own PC processor based on the technologies provided by this company called Nuvia, which Quotcom recently acquired. And the Nuvia technology is supposed to be superior to the technologies from ARM, which Quotcom has been relying on in the last few years. And hopefully that'll give Quotcom a competitive edge over other manufacturers such as AMD or even Intel. But this PC processor development is not going to come to fruition until the second half of 2022. I'll definitely be paying attention with regard to this development. 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 I can receive notification when I publish a new video in the future. It'll also encourage me to make more videos like this. Thank you very much. Let's continue. If you want to know more about the details of Quotcom, you might refer back to my February 21st video on Quotcom. It looks like this. In that video, I have a lot of details on patents and lawsuits and the industry landscape. I compare Quotcom's processors with the processors from Samsung, Apple and MediaTek. What are the competitive advantages of Quotcom? First of all, they're the leader in 5G technologies. They have more than 125G licensing agreements. They have this Snapdragon series of processors that have been extremely successful. Definitely, they have the leadership in the 5G chipsets. They also have the leadership in the gaming cell phone segment. Recently, there's a totally different segment, the RF front-end segment, that's been growing very rapidly. Recently, they settled a lot of lawsuits, for example, the lawsuit with Apple. They won in the higher court with regard to the lawsuits with the US government about antitrust rules. And we see that very steady continued increases in sales and earnings. They do have a couple weaknesses. For example, they are reliant on Samsung and Taiwan Semiconductor for producing their chips because Quotcom does not have its own foundry. And also Apple is going to be making its own 5G processors, although it's going to be quite a few years before it comes to fruition. Let's look at the analyst's opinions, how they changed from March 14, 2021. The last trading day's closing price, which was July 17, was $139.71. On March 14, it was $129.98. Certainly, the price went up. And I'll talk about my new price target later on in the next few minutes. Yahoo Business still gives them a buy rating. The low target is unchanged. Average target actually went down by less than a dollar from $172 to $171. High target is still the same at $200. Louis Nevilleur actually changed the rating from B to C primarily. It's a quantitative rating that went from B to C primarily because of the stock price movement. As we saw in the chart, Quotcom moved down together with the entire semiconductor industry due to the chip shortage. TipRanks.com changed average rating by a dollar. It moved up by a dollar. However, low rating went from $150 to $122. CNMoney increased the median rating from $172.5 to $175. The low rating actually went up from $122 to $136. The Street.com increased their rating from an A minus to A, which is a buy rating. And the target price went up significantly from $167 to $181. So we see some ratings that went up and some ratings that went down. Overall, it's somewhat inconclusive. Let's look at my own valuation of the company. I refreshed my table for the leading semiconductor companies and the market cap and PE ratio. And then from these PE ratios, I came to the conclusion that I could use the assumption of 18 as a PE ratio for Quotcom looking forward. Actually, that's very conservative because currently Quotcom has a PE ratio of 20.01. I believe I can assume an annual earnings growth of 27.3 percent. And that's from Yahoo Finance. If you look at the actual earnings growth in the last quarter, remember this slide we saw earlier, the net income actually increased by 54 percent. And that's why an assumption of 27.3 percent annual growth is very, very conservative. I then used the actual 12-month financial figures for Quotcom and apply the 18 PE ratio and 27.3 annual earnings growth. And I calculate what the stock should be worth for 2021, 2022, and 2023. From these three numbers, I decided to set the forecast of $160 to be reached by the end of October 2021. As you can see, 160 is really on the low end of these three numbers. That's why it's a very conservative number. Later on, when the price start approaching 160, I will most likely revise it upward. Let me recap my price target, which is $160 a share by the end of October 2021. And we do have an all-time high that was achieved earlier this year at $167.9. As of the latest, the share price was at $139.71. What are my strategies going forward? Because I'm so bullish about Quotcom, I have been holding Quotcom shares and I'll continue to hold some Quotcom shares for the long term. And I'll swing trade arrests of the shares to optimize my profit. What I'll do is that I'll sell the major resistance points or when adverse news happen so that I can lock in my short-term profit. And I will buy when the price bounces back from a major support point or when positive news happens. And I'll update my subscribers with Twitter messages. At this point, I'd like to encourage you to subscribe to my Twitter account in addition to subscribing to my YouTube channel. My Twitter account is DanMarketL. For example, in July 13, I bought more BioNTech shares on a dip and I explain why I bought more shares. Since then BioNTech already went up by quite a few percentage points. Again, I'd like to remind you to click the like, subscribe and notification button if you like this video. As usual, I will very much appreciate your comments, questions and suggestions. Thank you very much. I'd like to remind you that I'm not a financial advisor. I share my stock trading strategies for entertainment and educational purpose only. If you want to buy or sell stocks, you should make your own decisions and you should definitely consult with the financial advisors before you do so. This is about the rest of 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.