Out Fox The $treet

Qualcomm settles long lasting patent disputes with Apple. The new deal will immediately boost EPS estimates. The stock remains cheap with reasonable $7 EPS targets and a $70 stock price. In no big surprise to investors following our   investment research   on   Qualcomm   ( QCOM ), the company was able to obtain a   settlement   with   Apple ( AAPL ) over their wide disputes on patent royalties. The wireless technology giant had already garnered settlements in China and South Korea along with recent admission from Japan regulators that Qualcomm was not a monopoly. Along with constant signs that Apple was struggling to obtain a viable 5G modem by 2020, the expected outcome was a settlement that would send the stock soaring. Outside of unexpected financial terms, Qualcomm heads higher. Read the full article on Seeking Alpha.  More commentary on WhoTrades .  Disclosure: Long AAPL, QCOM. Please read the disclaimer page for m...

JNJ continues to face escalating liability risk due to talc cancer lawsuits. The authorized $5 billion share buyback reduces confidence in the stock. Even after the selloff, the stock isn't appealing at 15x forward EPS estimates with the liability risk overhang and potential brand damage. In the middle of a crisis,   Johnson & Johnson   ( JNJ ) authorized a headline-grabbing stock buyback. The amount actually suggests that the talc lawsuits might have a bigger financial impact than originally thought. My consistent   investment thesis   remains intact that the stock should be avoided on this liability risk even after the stock dips nearly $20. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.   

Several Massey Energy (MEE) shareholders attempted to block  the Alpha Natural Resources (ANR) buyout in court today. Talk about shooting yourself in the foot to make a point. The crux of the lawsuit is that MEE shareholders aren't getting fair value due to reckless management. Not to mention if shareholders don't want the merger they can vote it down. Huh? Just how exactly do they expect to reclaim that value if the deal is blocked? MEE stock would surely drop without a deal. The company has very valuable assets, but its operations continue to struggle making it very difficult to attract much more of a premium. The funds which include several pension funds claim that Massey's stock is discounted by as much as $1.5B because of management's long disregard for safety. Hmm. Well doesn't that safety record therefore impact any future value? The new CEO would have to clean up the safety record and get operations back to normal prior to getting a higher value. By then...