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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 163.32+2.3%Nov 21 9:30 AM EST
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To: Jim Willie CB who wrote (32315)6/14/1999 8:27:00 PM
From: Art Bechhoefer  Read Replies (1) of 152472
 
Jim, just remember that portfolio managers can't manipulate the stock themselves, without help from the media. One of the first times QCOM stock tanked was about 6 or 7 years ago, when someone thought that holding a cellular phone to your ear would give you brain cancer. When it was pointed out that such an occurrence would be much less likely with CDMA, since the transmitter was "on" only when actually transmitting speech sounds, the stock still took a long time to recover.

Then there was the time that someone published an article by an engineer out west who was dead certain that CDMA could never work because it was too complicated. His references to problems in early tests in the L.A. area failed to note that QCOM was able to redesign its ASICs to eliminate the problem (caused by interference from analog signals along the freeways).

Then there were several well publicized investment firm reports that predicted QCOM earnings would stem mostly from royalties and not from manufacture of handsets. The investment firm thought that would limit profits and therefore, it concluded, QCOM would not be a very good investment.

All you need to do is maintain a large short position prior to such announcements, and you're almost guaranteed to make money. And recall as well that during the early 90's, QCOM had a small enough market cap to make it easy for institutions of modest means to manipulate the shares. Even though the broker I do business with is very bullish on QCOM, they still prefer the staid old favorites like Motorola and Nokia.
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