From Raging Bull
I am from Hong Kong, and I have a certain degree of knowledge of the business outlook
in China.
You first have to understand the existing telecommunication infrastructure of China,
most of the country doesn't even have a phone
line and phone access. With the rough mountainous terrain of China, it will be extremely
expensive and lengthy to set up wires for phone or communications! Chinese government
is very favorable in establishing wireless communications and infrastructure in China,
since it is a cheaper way in connecting the country compare to building and laying
thousands of miles of phone lines.
Not to mention, in the minds of most Chinese people, they view American's wireless
technology is far more superior to any other countries in the world! They are very eager
and desperate in adopting the technology, although they certainly don't show it! It's part of
the culture; they never show strong interest in an attempt to strike a good deal!
The Chinese leaders want to catch up with the western economies as fast as possible,
and they understand without the help of new technology, they will never catch up! In the
midst of a boom in Internet revolution, they see a chance that they can be in the same
level with the western countries (in terms of Internet technology).
There is no doubt in my mind they will adopt the CDMA technology from QCOM. It is what
they want and need!
Everyday, it seems there are more people using cell phones. For god sake, the taxi
driver was using one to buy some hot stocks when I was in Guondong. It's growing ever
popular day after day. It is a trend. The phone doesn't cost as much compare to a car, so
most Chinese people can afford it and want to use it! Why you think Motorola invest so
much money in China??
QCOM will be big. China wants the technology that QCOM can offer and solve its
problem!
I can't explain and describe the stock's plunge in recent days. People blame interest rate,
other blames negative sentiments. It is a very volatile market out there with the increasing
interest of investing and day trading like never before. But isn't what stocks do, they go up
and they go down. That's very normal. It is not something to worried about. As long as you
stay with the course and buy the stock which has tremendous fundamental and potential
QCOM. Do you have any idea, how much increase of revenue will there be for QCOM in
China with population of 1.2 billion? Buy low now and you will be winner in QCOM in a
very short time! QCOM can pop up 50% in one day after the CDMA deal is certain, and I
won't be surprised if the recovery will begin starting tomorrow. It will happen! Trust an
insider's opinion! I hope this helps with the panic and uncertainty out there in QCOM.
Short sellers just want to yelled and scared people into selling, so they can pocket some
quick profit. This can be very dangerous and risky. The PE ratio now is at 40.35, and this
is a steal at these prices. Who said it's overvalue is just trying to beat down the stock with
no real rational backing.
The PE now is 40.35!! Wake up people, QCOM is a promising company in such a great
position for tremendous profit! If you sell now, you will really be sorry. Merrill Lynch knows
how great this company is, if you haven't notice, during April sell off, they had sold large
position of QCOM during the sell off. They now see the opportunity for QCOM, all they
doing now is just say "OH! QCOM won't benefit that much!" That's only a scheme for them
to buy and load up on QCOM at a cheap price. After they done buying and loading up,
they will praise QCOM again and who will make the most profit?
Wake up people! Who ever has NASDAQ level II quotes will be able to verify that! Merrill
Lynch has huge buying position! Once those bids go off! QCOM will be non-stoppable.
Be really alert and careful out their shorts! I will be out there loading up too. Good luck to
you all!
P.S. Another company, which will benefit greatly from the Internet boom in China, is
Pacific Century Cyberwork (PCCLF) a Hong Kong base tech company. They have great
access and position to build the Internet infrastructure of China too. Rank number 3 in
size behind two Japanese Tech Company. |
