Qualcomm Incorporated (QCOM) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 178.29

-1.6%

Dec 12 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: JeffreyHF who wrote (143312)	7/5/2006 7:53:28 AM
From: hedgefund	of 152472

I've been long Q for more than ten years; this looks to be one of the more difficult times over that decade or so. There are folks out there who think Nokia will win a concession from Q on royalties. For example, SSB says: The consensus belief is that if the two companies reach an agreement, Qualcomm will have to accept a reduction in the net royalty received from Nokia. While this impacts their royalty business, it allows their WCDMA chipset business to remain without impact. Our sensitivity analysis suggests that a 100 basis point reduction in the royalty rate would reduce our EPS by roughly $0.01 per quarter or roughly $0.04 in calendar 2007. I understand other analysts have opined that Q has the upper hand in these negotiations but there are analysts who have a contrary view and the market appears to be voting with them, as much as I hate to admit it.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next