About a month back, we were at the disposal of Foreign Companies, who were techno partners in India. When a Foreign company sells stake in its indian unit, it was obvious that the indian unit was getting hit. But that was the way of life then.
But now, with the launch of NASDAQ-100 ETF fund, life becomes easier. For instance Qualcomm which is part of NASDAQ was holding 76% stake in Broadband Wireless Access Spectrum in India. Though BWA was an Indian asset, since it was held by a foreign company we could not encash on the opportunity. And today's news says that Qualcomm would sell its entire 76% stake to Bharti Airtel company. No doubt your existing investing in Bharti Airtel would benefit you out of this deal.
Above that, if you invest in NASDAQ-100 Fund you indirecly hold on to 100's of companies including Qualcomm. No doubt - it may be a win-win situation.
..............................................................................
Qualcomm Inc. (QCOM: 51.71 -0.61 -1.17%), the leading chipset maker for mobile handsets worldwide, intends to dispose of its remaining 76% stake in Broadband Wireless Access (BWA) spectrum in India to the local operator Bharti Airtel for around $1.2 billion–$1.3 billion.
In July 2010, Qualcomm sold 24% stake of its Indian broadband venture to Indian telecom operators Global Holdings Corp. and Tulip Telecom Ltd. for a consideration of around $58 million.
In 2010, the Government of India concluded a spectrum auction for both 3G networks and broadband wireless access where Qualcomm paid $1.045 billion to obtain the operating license in four major service areas of New Delhi, Mumbai, Kerala and Haryana.
Qualcomm plans to divest its full stake after creating a next-generation (4G) LTE (Long-Term Evolution) network to roll out super-fast broadband wireless access services. LTE is the emerging mobile technology that offers extremely fast broadband access speed and high-end multimedia services.
The fast-growing broadband market is attracting billions of dollars for introducing LTE networks in India in the coming years. As of now, after China, India is the second largest mobile phone market with respect to subscriber count.
Despite 735 million wireless subscribers, the broadband penetration rate is a mere 2%. This makes India the investment hub for telecom operators and gear makers.
Qualcomm maintains a strong balance sheet with nearly $19.107 billion of net cash & marketable securities. The company continues to generate positive free cash on a sequential basis. We believe liquidity will further strengthen as the company has decided to sell its FLO TV 700MHz spectrum licenses to AT&T (T: 27.94 +0.20 +0.72%) for $1.925 billion.
We maintain our long-term Outperform recommendation on Qualcomm. Currently, Qualcommhas a Zacks #2 Rank, implying a short-term Buy rating on the stock.
To read original article, click here.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment