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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 177.78-2.2%Jan 9 9:30 AM EST

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To: Didi who wrote (57403)12/29/1999 9:24:00 AM
From: Ruffian  Read Replies (2) of 152472
 
Qualcomm - PaineWebber -3: Indicated To
Open Up 90

No further information is available at this time.

Qualcomm shares, which will split 4-to-1 on Thursday, are indicated to open
up 90.

PaineWebber analyst Piecyk's 12-month price target of $1,000 represents
175-times and 55-times his 2001 profit and revenue estimates, respectively.
Underlying the price target is an assumed value of $800 for the present value
of the company's royalty stream, $170 for 60-times profits from its
application-specific integrated chips and $30 for its other assets.

Qualcomm developed the Code Division Multiple Access wireless
technology, which is commonly known as CDMA. The company's patents
entitle it to royalty patents for CDMA, which has emerged as the
predominate standard selected by digital wireless carriers to allow
high-speed data connections on wireless networks.

Currently, 18% of all phones use CDMA, said Piecyk.

Qualcomm also sells more than 90% of the application specific integrated
chips, or ASICs, used in CDMA phones.

Piecyk estimates by the end of the next decade 85% of all digital phones sold
will use CDMA technology. This assumption results in a royalty payments of
as much as $20 billion.
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