After a tumultuous year of battling Apple over licensing payments, shares of Qualcomm Inc. (+25.2%) rebounded in the fourth quarter as rumors began to swirl that Broadcom was interested in acquiring the company. In November, Broadcom officially offered to buy Qualcomm for $70/ share of cash and stock. Qualcomm (NASDAQ:QCOM) rejected the offer, saying it dramatically undervalues the company and setting the stage for a potential proxy battle. Shares of Qualcomm remain attractive at less than 14 times earnings per share with a 3.5% dividend yield compared to the overall market of 18.5 times and 1.8%, respectively.
From Leith Wheeler Investment Funds' 4th quarter 2017 commentary.
