A great post from an old timer at RB:
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By: rbp
Reply To: None Wednesday, 24 May 2000 at 3:21 AM EDT
Post # of 42271
I've been investing for over thirty-five years and have held QCOM since the initial IPO and added more shares to my position along the way. I now have a large position in QCOM and like all longs have suffered watching it go down.
But through the years I've learned you can't fight the Feds nor the tape.
The QCOM/China deal to supply CDMA equipment and expertise which was signed and executed a few months ago stalled due to politics but will be rekindled with the passage of the China bill. The impact on QCOM's bottom line of fully implementing this agreement alone will double their revenues within three years. However, if and when the bill passes Congress, don't expect much action since I anticipate QCOM stock to do nothing or go down because that's the kind of market we are in. Also in the wings is a deal to supply India with CDMA stuff but to-date there is no agreement in place. A signed agreement should also mean another yawn or 10 point drop. I still rate QCOM as a strong buy (although my numbers show it may drop to $55-60 per share) because their fundamentals remain solid with a potential for blowout earnings this, next quarter and beyond but who cares if no one buys the stock. Yup, this is an ugly market indeed.
This market is really ugly and I'm afraid it will continue for months to come. Greenshit really shot this market in the heart. By the way, I've read where Greenshit owns only few stocks held in a blind trust and has most of his money in Treasuries. Great, huh? In my opinion, he really over reacted and if he continues, the US is in real danger of a recession or worse. I've seen this before in the early 70's and again in the 80's and things won't turnaround for quite some time. My investment advice is to go to the movies, read a book, travel, watch TV, drink yourself to oblivion, go fishing, play golf, sky dive or do whatever and ignore this bloodbath. This market has much lower to go. The QCOM fundamentals are very strong and getting stronger, and IMHO we will be amply rewarded over the long haul. Hang in there guys and gals.
I also want to take a minute and thank everyone on this board for all the good QCOM poop and supporting information written over the past few years.
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