CBS Marketwatch>
worries' for QCOM
Also: Com21's collapse
By Shawn Langlois, CBS MarketWatch
Last Update: 4:41 PM ET Sep 2, 1999
NewsWatch
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So the stock dropped 23 1/2 to 168 11/16 -- big deal. Judging from the
sentiment on Qualcomm's message boards, investors simply shrugged off
the bad day. After all, despite a turbulent marketplace, shares of
Qualcomm (QCOM: news, msgs) have soared all summer long. See
related story.
Silicon Investor's
boards were ripe with
QCOM bulls. Drake
posted, "Remember
people, when you buy
stock, you're buying the
competency of those
who run the company --
wouldn't we all say that
their competency has been outstanding to date? If our competent
management needs to get rid of an unprofitable segment of their business,
don't you think they will?" He then alluded to some potential seasonal
prosperity: "What one gift for this coming Christmas will probably be the
most sought-after by people all over the world?" Hmm, I don't know
about you, but my 7-iron accidentally broke over my knee -- I could sure
use a replacement.
CaxtonR exemplified the casual confidence of
most long-term holders: "Life is good, no worries.
3-5 bagger in five years. How many people even
understand the concept of a handheld wireless PC?
Not many now, but in three years when everyone is
doing the net thing with their CDMA/phone/PC it
will all seem so clear. People's hindsight is much
better than their foresight and that is awfully good
for us QCOM investors."
JillN also took a light-hearted look at the
fluctuation: "Somehow this market reminds me of
that famous Gary Larson cartoon where two pilots
are manning a plane: 'Sorry folks, there's going to
be a little turbulence!' they announce, then have a
blast veering their steering wheels from left to right."
I suppose this 'no worries' attitude is easy to have
when your sitting on the type of gains that QCOM
has amassed this year. I wonder if the guy who
bought shares at 198 feels the same way. If the
majority of posters are right, even that guy can afford to kick back and
watch as Qualcomm jumps over this short-term hurdle.
Com21 flunks out
Com21, Inc, a leading manufacturer of cable modems, took a beating on
Thursday when software troubles prevented the company from receiving
certification from CableLabs. As the stock retreated, the message
boards were buzzing with questions.
RogerC vented his frustration towards Com21 (CMTO: news, msgs) on
Silicon Investor: "Management should be ashamed of itself. Kept our
hopes high on the last conference call only to disappoint. Last time, they
said it's a small glitch; this time, it's a software problem. What's going to
go wrong next time? Its entire cable modem this time? Who said CMTO's
management is scrupulous?" AndrewH added, "CEO led everyone to
believe they would pass. Lawsuits are coming!"
Many posters stood firmly behind the company,
despite its struggles. Oversold's name reflected
his opinion: "This is a sad day, but this is a good
company, and they have good management.
Com21 is forward thinking and moving into
wireless. Fortunately the price is firming a bit off the
bottom. I hope we get a Christmas present from
them in December. Next earnings will fill in the
picture."
Mojo's mojo failed him on Raging Bull: "... just
wondering what didn't they know would be part of
the certification assessment? Hard to believe they
missed it again. Still a good company with strong cable industry
prospects, but this is a real unpleasant surprise to many of us.
BUMMER!" Trammer chimed in with, "Just remember you don't lose
unless you sell. This is definitely a setback and a sad harbinger for the
Christmas season, but the company is solid with a great cash position.
Hold tight."
Dorkfest blamed himself for the freefall: "This is a stock that I own;
therefore, it will suck. The general pattern is if I go long, then (1) CEO
and CFO arrested for drug dealing, (2) patents canceled, (3) product
causes cancer." Hopefully, shares of CBS MarketWatch (MKTW: news,
msgs) aren't a part of Dorkfest's investment strategy.
CMTO bulls, for the most part, were hanging by the thinnest of threads on
Thursday -- no easy task when their stock shed 30 percent. |
