Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 163.32

+2.3%

3:59 PM EST

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To: Voltaire who wrote (50653)	11/17/1999 1:05:00 PM
From: Jenne	Read Replies (1) of 152472

The Option Investor Newsletter Wednesday 11-17-99 Copyright 1999, All rights reserved. Redistribution in any form strictly prohibited. Posted online for subscribers at optioninvestor.com ********************************************************** TRADING ALERT - TRADING ALERT - TRADING ALERT 12:30PM TRADING ALERT - TRADING ALERT - TRADING ALERT 12:30PM TRADING ALERT - TRADING ALERT - TRADING ALERT 12:30PM TRADING ALERT - TRADING ALERT - TRADING ALERT 12:30PM TRADING ALERT - TRADING ALERT - TRADING ALERT 12:30PM *********************************************************** QCOM - Qualcomm Inc. $330.00 -32.00 (-46.75 this week) QUALCOMM Incorporated is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's major business areas include CDMA phones; integrated CDMA chipsets and system software; technology licensing; and satellite-based systems including OmniTRACS® and portions of the Globalstar(TM) system. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 1999 FORTUNE 500® company traded on the Nasdaq under the ticker symbol QCOM. Hello, entry point! After releasing better than expected profits in its Q4 and a 4:1 stock split, Qualcomm has seen incredible volatility and incredible profits. So what is a trader to do if you missed the boat the first time around? Be patient and wait for an entry point. We have been doing just that and we think today may be the day to find that elusive entry. The stock burst from the $220 range all the way up to $400 in less than two weeks. The Nasdaq has also been on fire, further pushing QCOM to lofty heights. But not everything goes up in a straight line and QCOM is now pulling back, down $35 today at the time of this writing. The 10-dma is at $325 and should be support for QCOM. We will watch for the ensuing bounce but feel like this may be the time to pull the trigger. There are many catalysts to this stock but the foremost one is the stock split which the Board of Directors will vote on in December. The voting date is currently scheduled for Monday, December 20. Not to mention stellar earnings. QCOM beat First Call estimates by reporting $0.91 vs an estimate of $0.88. This is what the COO Richare Sulpizio had to say. "During the fourth quarter, we achieved record shipments in all of our businesses. We shipped 14 million MSM phone chips, 15 thousand OmniTRACS units and 1.9 million CDMA phones. Component shortages in the phone business are beginning to ease, although these improvements were offset by lower phone prices." We will go into even more detail on the technology and strategy of QCOM in future write ups. But for now we want to make you aware of the potential for a good entry point if you are looking at this play. So to recap, watch for a bounce in the $329-$330 range. Anything lower is just frosting on the cake. HIGH PREMIUM ALERT !! Another good strategy for this play would be to go long the stock and write covered calls in the $350 neighborhood. The premiums are so inflated that you could take home $30 a contract on the Dec $350 calls. Now you have $20 or more in the stock plus the premiums for a $50 play. BUY CALL DEC-330 AAF-LF OI=1084 at $42.25 SL=33.00 BUY CALL DEC-340 AAF-LH OI= 298 at $37.50 SL=29.00 BUY CALL DEC-350 AAF-LJ OI= 458 at $32.50 SL=25.00 BUY CALL DEC-360 AAF-LL OI= 755 at $28.75 SL=22.25 Picked on Nov 16th at $130.00 P/E = 265 Change since picked +0.00 52-week high=$406.13 Analysts Ratings 6-9-4-0-0 52-week low =$ 24.50 Last earnings 11/99 est= 0.88 actual= 0.91 Next earnings 02-00 est= N/A versus= N/A Average Daily Volume = 10.1 mln Chart = quote.yahoo.com

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