QCOM as a proxy for SD housing market

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Submitted by gzz on May 28, 2015 - 2:08pm

If you want to eventually buy a house in SD, you should buy QCOM while you are saving your downpayment.

If QCOM goes up, that makes up for the higher prices fueled by the stock options of all the employees. If it goes down, you likewise have lower house prices as your consolation.

Maybe add CAH to this too. Not sure if they still employee a lot of people here.

Submitted by an on May 28, 2015 - 2:33pm.

I don't understand the reasoning? Why buy QCOM while you're saving up for a down payment? Why not buy the many other companies that perform better than QCOM?

Submitted by Coronita on May 28, 2015 - 3:07pm.

Qualcomm might be a larger employer but it isn't the only one, and won't drastically affect home prices by itself.

From observation, homebuyer pool in some of the areas I watch include (in no particular order)

1. Foreign buyers
2. Retirees
3. Lawyers
4. Doctors
5. Dentists
6. Biotech workers
7. Genetic sequencing companies
8. Small/mid business owners
9. Intuit workers (52 week high)
10. Other engineers in other companies (many)

The days of qualcomm stock options/RSU's have been numbered. New employees do not get any sizeable grants worth mentioning. Most of the large grants are people years ago. Qualcomm is in the mist of cost cutting. Examples include (overheard from colleagues)

1) A new monthly 401k maintanance fee
2) A higher deductible health insurance with an HSA account component
3) Elimination the most benefits of the executive health plan for folks Senior Staff Engineer or higher, except for dental and vision.
4) Employee pay of some of the fringe benefits off hours.
5) Compensation limits in QCT.
6) Elimination of non-core groups (IT, support software, etc)

So far, even in the mist of such things going on, you don't see SD house prices drastically affected by this, right? QC stock also have corrected from the high 80ies to the low 70ies. That doesn't appear to have dampened home purchases in the county either.

So that seems to suggest that home buyers in SD are diverse than one might think.

Submitted by joec on May 28, 2015 - 6:08pm.

Investing in a single stock or any stock IMO is the stupidest thing you can do if you are going to purchase a house soon...with your down payment...

One "accounting" irregularity can destroy your lifetime of savings and if you are looking/waiting to buy a house, keep it in short term investments where you can buy a house if you find one you like.

The name of the game is not to "make" money, but to wait till you find a house you are happy living for the longer term (5, preferably a lot longer 10+ years or more even)

... Spoken as someone who HAS given professional financial advice ...

Submitted by ocrenter on May 28, 2015 - 9:52pm.

flu wrote:
Qualcomm might be a larger employer but it isn't the only one, and won't drastically affect home prices by itself.

From observation, homebuyer pool in some of the areas I watch include (in no particular order)

1. Foreign buyers
2. Retirees
3. Lawyers
4. Doctors
5. Dentists
6. Biotech workers
7. Genetic sequencing companies
8. Small/mid business owners
9. Intuit workers (52 week high)
10. Other engineers in other companies (many)

The days of qualcomm stock options/RSU's have been numbered. New employees do not get any sizeable grants worth mentioning. Most of the large grants are people years ago. Qualcomm is in the mist of cost cutting. Examples include (overheard from colleagues)

1) A new monthly 401k maintanance fee
2) A higher deductible health insurance with an HSA account component
3) Elimination the most benefits of the executive health plan for folks Senior Staff Engineer or higher, except for dental and vision.
4) Employee pay of some of the fringe benefits off hours.
5) Compensation limits in QCT.
6) Elimination of non-core groups (IT, support software, etc)

So far, even in the mist of such things going on, you don't see SD house prices drastically affected by this, right? QC stock also have corrected from the high 80ies to the low 70ies. That doesn't appear to have dampened home purchases in the county either.

So that seems to suggest that home buyers in SD are diverse than one might think.

Agree about the well-to-do retirees that just decide to pick SD. Met someone that literally lived all over the country throughout his career and picked SD the moment he retired.

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