Qualcomm: Diversification Dialed In, But Q1 Earnings Could Drop The Call

Investment Style and Strategy - The investor employs a contrarian investment style, focusing on stocks that have experienced recent sell-offs due to non-recurrent events, particularly when insiders are buying shares at the new lower price [1] - The investment timeframe typically ranges between 3-24 months, with a portfolio allocation of approximately 50% shares and 50% call options [1] - The investor uses fundamental analysis to assess the health of companies, including their leverage and financial ratios compared to sector and industry medians and averages [1] - Technical analysis is utilized to optimize entry and exit points, with a focus on multicolor lines for support and resistance levels on weekly charts [1] Screening and Analysis Process - The investor screens thousands of stocks, primarily in the US, but may also invest in international markets [1] - Professional background checks are conducted on insiders who purchase shares after a recent sell-off to ensure credibility and alignment with investment criteria [1] - The investor avoids unnecessary jargon and prefers authentic, straightforward communication in their investment approach [1] Portfolio Composition - The portfolio is split approximately 50%-50% between shares and call options, with a preference for illiquid options that offer high-risk, high-reward opportunities [1] - Shares are occasionally purchased to maintain a balanced portfolio and avoid being categorized as overly speculative by peers [1]