Clipped from the EMC thread (Post 7288):
"In a July 27 hotline to subscribers, momentum investor
Carlton Lutts reported that three of his four market timing
indicators are in negative territory. He responded by
retracting buy recommendations on four of the eight stocks
in his model portfolio. "In Cabot's Model Portfolio, we're
rating only the four strongest stocks buy," Lutts says, as
each is showing exceptional strength despite the current
market volatility."
"One of these stocks is Qualcomm (QCOM). Shares in the
communications equipment leader rocketed more than 200%
year-to-date after a huge Q2 1999 earnings surprise and the
settlement of a dispute with Ericsson. Qualcomm is now a key
licensor of the CDMA, a digital cellular technology that
offers superior performance, lower noise and a greater
variety of services than analog cellular systems. CDMA is
also the fastest growing digital standard in the world, and
CDMA subscribers should surpass 30 million in 1999 vs. 20
million in 1998."
"Someday, all over the world, wireless systems will carry
more phone calls than phone lines," Lutts says. Qualcomm
gets a royalty on every CDMA handset, each base station sold
by licensees, and one-time fees from equipment makers.
Qualcomm is also the leading CDMA handset maker. "Investors
are accumulating this stock because they expect demand for
CDMA products to keep producing profits for Qualcomm," Lutts
says. He maintains his buy recommendation."
Source evidently Carlton Lutts' recommendations ("Hotline,"
July 27, 1999, The Cabot Market Letter.)
- Eric - |
