As I mentioned in an early article, NXP Semiconductors (NXPI) is a great buy in a fundamental standpoint. Qualcomm (QCOM) had to abandon the merger without the approval from China. As a result, Qualcomm also had to disburse $2 billion in breakup fees to NXP Semiconductor as well.
The breakup caused a huge drop in the price as many hedge funds exited their positions. Many investment funds thought that the merger would get approved at $127 per share. Therefore, many hedge funds continue to exit their positions causing a rapid drop in NXPI price.
This has caused the stock chart to look rather poor in a technical standpoint. In such a poor outlook, I even exited my position in the stock. I will await a better outlook before coming back into the stock. I will be looking for a modest uptrend to enter a position again. This means it will be at minimum 2-3 months before I look at this stock. However, I do believe in the long-term this should be a winner even for those wishing to just buy and hold.
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