Morningstar things high of Qualcomm, which is in a multi-year low now. Is this a right entry point?

Qualcomm is in the enviable position of owning much of the intellectual property behind one of the dominant standards in the communications industry: code-division multiple access (CDMA) wireless technology. We believe the company stands to benefit from increased adoption of CDMA technology globally, and we would recommend this wide-moat stock at a modest discount to our fair value estimate.

Qualcomm's competitive advantage stems from its extensive patent portfolio and intellectual property relating to CDMA technology, one of two major wireless protocols used around the world. The firm's business model capitalizes on the use of CDMA from primarily two revenue streams. The first is through the design and manufacture of chipsets for CDMA phones. Competition is rising in this segment, but Qualcomm's CDMA leadership and commitment to software development positions it very well with handset vendors. The other main source of revenue is collecting royalties for the use of its CDMA patents. The firm collects a one-time licensing fee and then reaps a low-single-digit percentage cut of the selling price of each CDMA phone sold. This toll-bridge quality--the firm's economic moat--is the main reason to get excited about Qualcomm.