Qualcomm shares gain the most in a week on Monday, company rebuffs $103-billion takeover bid by Broadcom

November 14, 2017 10:53 am

Qualcomm Inc was reported to have rebuffed a $103-billion takeover bid by rival Broadcom on Monday, while noting in a statement that such an offer considerably undervalued it. The bid emerges at a time, when Qualcomm is attempting to finalize its pending acquisition of automotive chip maker NXP Semiconductors NV for $38 billion.

The shares of Qualcomm Incorporated closed higher for the seventh time in the past nine trading sessions on Monday. It has also been the steepest daily surge since November 3rd. The stock went up 2.97% ($1.92) to $66.49, after touching an intraday high at $66.76, or a price level not seen since January 17th ($66.97).

In the week ended on November 12th the shares of the digital communication technology company added 4.47% to their market value compared to a week ago, which marked a third consecutive period of gains.

The stock has extended its advance to 30.35% so far during the current month, following a 1.60% slump in October. The latter has been a fifth consecutive month of losses.

For the entire past year, the shares of the NASDAQ-listed company rose 30.45%. The stock has gained another 1.98% so far in 2017.

There have been indications of Broadcom’s willingness to acquire Qualcomm Incorporated, regardless of whether the latter finalizes the purchase of NXP Semiconductors.

“After a comprehensive review, conducted in consultation with our financial and legal advisors, the Board has concluded that Broadcom’s proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty”, Tom Horton, Qualcomm’s Presiding Director, was quoted as saying by Reuters.

“No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry”, Qualcomm’s CEO Steve Mollenkopf said, cited by the same media. “We are confident in our ability to create significant additional value for our stockholders”, he added.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Qualcomm Incorporated’s stock price, have a median target of $60.00, with a high estimate of $76.00 and a low estimate of $53.00. The median estimate is a 9.76% decrease compared to the closing price of $66.49 on November 13th.

The same media also reported that 14 out of 24 surveyed investment analysts had rated Qualcomm Incorporated’s stock as “Hold”, while 10 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Qualcomm stock are presented as follows:

R1 – $66.67
R2 – $66.86
R3 (Range Resistance – Sell) – $67.04
R4 (Long Breakout) – $67.59
R5 (Breakout Target 1) – $68.23
R6 (Breakout Target 2) – $68.54

S1 – $66.31
S2 – $66.12
S3 (Range Support – Buy) – $65.94
S4 (Short Breakout) – $65.39
S5 (Breakout Target 1) – $64.75
S6 (Breakout Target 2) – $64.44

By using the traditional method of calculation, the weekly levels of importance for Qualcomm Incorporated (QCOM) are presented as follows:

Central Pivot Point – $64.17
R1 – $66.19
R2 – $67.81
R3 – $69.83
R4 – $71.85

S1 – $62.55
S2 – $60.53
S3 – $58.91
S4 – $57.29

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