Fasten your seatbelts everyone. Qualcomm may announce sale of phone unit
To hold press conference after the markets close
By Myra P. Saefong, CBS MarketWatch
Last Update: 2:41 PM ET Dec 22, 1999 Movers & Shakers
Market Pulse
SAN DIEGO (CBS.MW) -- Qualcomm said it'll host a news conference Wednesday at 4:30 p.m. Eastern time regarding the sale of its phone business, one day after its shares tested the 500 milestone.
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Updated:
12/22/99 1:17:54 PM ET
Qualcomm (QCOM: news, msgs), a wireless telecommunications company, will hold a press conference in San Diego, Calif., and make an announcement regarding the sale of its phone business, the company said early Wednesday.
Shares of the company slipped 6 1/8 to 490 3/4 in recent trading.
Banc of America Securities analyst Mark A. McKechnie said he thinks Qualcomm's sale of its handset division will be announced at the press conference. The impact of such a sale is dependent on the buyer, according to McKechnie.
He said he sees fiscal 2001 earnings per share for the company in the $5.25 to $7 range and a stock price as high as $700.
"We sent out a media advisory that Qualcomm will host a press conference," a representative from Qualcomm said, adding that he could offer no additional comment. "Everything is on hold" until the conference, he said.
On Tuesday, Qualcomm's stock hit a high of 500 7/8 and closed at 496 7/8, up 30 1/8.
The stock has enjoyed a massive run-up in recent months (see chart), in large part owing to bullish outlooks from telecom-stock analysts. On Tuesday, J.P. Morgan raised its price target for Qualcomm shares to $570 from $460.
The company has set a 4-for-1 stock split at the end of the year. |
