Qualcomm...the next Microsoft
Communication Infrastructure
The first he calls infogenesis, or the building of the communication infrastructure of the world, a great engineering project that Luskin compares to building the Hoover Dam, the electric power grid or the U.S. interstate highway system.
Here Luskin looks for blue-chip, or what he calls "new-chip," companies like Global Crossing (GBLX:Nasdaq - news - boards), JDS Uniphase (JDSU:Nasdaq - news - boards) and Qualcomm (QCOM:Nasdaq - news - boards). "We think there is a place in every portfolio for companies like this that you just tuck away," he says. "When you consider that half the people alive have never made a phone call and when they do it will probably be a wireless call on a phone using CDMA technology, Qualcomm looks cheap." Qualcomm owns the patents on CDMA, or code division multiple access technology.
Although Qualcomm is hardly undiscovered, and one I've written about in the past and still own, Luskin believes most investors don't fully understand the potential. "When people think of cell phones, they think about how they hate to hear them go off in a restaurant," he says. "They're just not getting the picture. One billion people in China are waiting to get plugged into information technology. We will look back in 10 years and say, `Why didn't I see that? It was the next Microsoft.' "
Complete article:
thestreet.com
Regards,
james |
