Qualcomm Incorporated (QCOM) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 169.01

+0.6%

11:53 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jim Willie CB who wrote (41790)	9/18/1999 5:09:00 PM
From: JohnG	Read Replies (1) of 152472

Jim Willie. On 200 level--Q will BLAST RIGHT THROUGH IT. After reading around the thread this AM, one thing sticks in mind. Several people such as MM point out that it was indicated that sale of the division will be accretive to earnings. This has to do with internal ASIC transfer price from ASIC division to subscriber division. This means that possibly that margin on ASICS being used to build Q phones (if computed compared to ASIC merchant sales)has been attributed to the subscriber branch. But apparently, margin from mfg of phones less this internally atributed ASIC margin may well be a negative number. Thus, if Q can find a buyer that will agree to mfg its phones (probably for strategic market reasons) using ASICS purchased from QCOM then Q's profits will immediately jump. Put another way, Q mgt has been kidding us about the profitability of the Subscriber Division--but not in an evil way. Previously, they could not have sold all these ASICS without building the phones. Now the market has grown. So, in the future, they can sell all these ASICS to a company that will buy the subscriber division. Concl: Having apparently unlocked hidden profits, the Q stock price will BLAST RIGHT THROUGH THE 200 LEVEL based on analyst understanding just what has just happened and issuing stronger buy ratings. TA be dammed. There is a new game and a new company called QCOM that is no longer subsidising a phone manufacturing operation too small scale to take advantages of the efficiencies of scale available to larger phone manufacturers. What has happened is similar to dumping the loosing terestrial division off to ERICY who is in a better position to profit from it. Also, look at Friday's price volume chart. The upward trend is relentless. Those who have figured out the score based on the analyst meeting are buying, buying, buying. Those sitting at the rear of the bus were scared out of their wits and allowed to sell their shares in the 150's. Sad, buy true. JohnG

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next