Shorts See Qualcomm Going Down

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By Douglas A. McIntyre Published

Short sellers are betting against Qualcomm (QCOM). March short interest in the stock went up 10.7 million shares to 29.7 million.

Qualcomm’s litany of problems would certainly be a reasonable cause. The firm’s licensing agreement with its largest customer Nokia (NOK) expires in two weeks. The companies are locked in an ugly royalty dispute.

Qualcomm is also in the midst of an intellectual property fight with Broadcom (BRCM), and the ITC has ruled against Qualcomm in the early stages.

Most investors probably want to steer clear of the shares completely. The stock has moved up 12% this year, but is still off sharply over the last 52 weeks. It would not take much bad news to wipe that 12% out.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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