Qualcomm's stock drops after the seller aims

Stocks of Qualcomm Inc.

QCOM, -2.86%

sank 3.0% against an 8 1/2 month low in morning trading Wednesday after seller Kerrisdale Capital was aiming for the semiconductor manufacturer, suggesting a downturn on about 60% from current levels. Kerrisdale said it believes the Federal Trade Commission will win its case against Qualcomm, which will force Qualcomm to license its key cellular patents to potential competitors like Intel Corp.

INTC, -0.52%

on "fair, reasonable and non-discriminatory" (FRAND) terms that Qualcomm had indicated earlier would destroy its licensing business. Assuming an FTC win, Kerrisdale said the economic impact would mean a stock price of $ 21[ads1].31, or 59.6% below today's level. The shares have cut 21% over the past three months while PHLX Semiconductor Index

SOX, + 0.07%

has gone 2.1% and S & P 500

SPX, + 0.05%

has an angular 3.3% lower.

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