Thats Why Qualcomm Stock Tanked 15% To $54 On Jan.

Qualcomms lock on the CDMA technology that powers all our smartphones gives it the power to extract rich royalties from handset providers. Now, though, judging by the number of lawsuits against Qualcomm, it seems like the company has gone from darling to dog. Recently, everyone from antitrust authorities in South Korea and the U.S. to Apple (NASDAQ:AAPL) have sued the company. Apples lawsuit at its core a pushback against those juicy royalties is the most serious. Thats why Qualcomm stock tanked 15% to $54 colorado medical marijuana news on Jan. 23 when the Apple news hit. Investors panicked that the suit means the smartphone industry will finally get a chance to hang up on those royalty payments. A million-dollar bet theyre wrong But in the selloff, the president of Qualcomms CDMA Technologies division, Cristiano Amon, made a million-dollar bet that panicky investors have it all wrong by putting $999,603 into his companys stock a little above $53 a share. This creates one of the classic setups I look for in my stock newsletter, Brush Up on Stocks . I love to see smart insiders going up against the market to challenge a selloff, especially when they buy in size, like here.

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