Why Bonanza, Quality Systems, Qualcomm, and More Are Making Headlines

QUALCOMM, Inc. (NASDAQ:QCOM) is trending after the company sued Meizu for patent infringement in Germany, France, and the United States. The latest legal action follows Qualcomm suing Meizu in China in June. The company’s general counsel, Don Rosenberg, said that “Meizu’s refusal to negotiate a license agreement in good faith and its sales and distribution of infringing products around the world leave Qualcomm with no choice but to protect our patent rights through these additional legal proceedings.” Ken Fisher‘s Fisher Asset Management was long 9.69 million shares of QUALCOMM, Inc. (NASDAQ:QCOM) at the end of September.

Baker Hughes Incorporated (NYSE:BHI) is in the spotlight after the U.S. oil rig count jumped again, this time inching up by four active rigs to 432 in the United States. The total number of active gas-rigs also rose by 11 to 105. Although the number of crude rigs is a far cry from the greater than 1,600 rigs in service in late-2014, the rising trend is positive for Baker Hughes, as it means more rig revenue for the service giant. 44 funds that we track were long Baker Hughes Incorporated (NYSE:BHI) at the end of June, up from 43 at the end of March.

Sprint Corp (NYSE:S) shares jumped by almost 4% on Friday after Jennifer Fritzsche of Wells Fargo said that the market “very much under appreciates” Sprint’s recent spectrum leaseback deal, which both improves Sprint’s liquidity and lowers its cost of debt. The analyst commented, “therefore, this deal could be immediately be accretive on a FCF basis, as Sprint should be able to significantly lower its interest expense and put its Net Operating Losses (NOLs) to work.” Based on the spectrum value of the deal, Fritzsche calculates that Sprint shares are worth considerably more than their current price (just based on Sprint’s spectrum) even when factoring in the company’s debt. Whether Sprint’s spectrum is actually worth what Fritzsche calculates on the open market is another question, however. 20 funds in our database were Sprint Corp (NYSE:S) shareholders on June 30.

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