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Why would Nokia want to attach itself to a company that has been reporting revenue growth less than one quarter of its own (16% vs. 69%) and that has a forward looking PE more than twice its own? A stock acquisition of QCOM by Nokia would be, as Warren Buffet is want to say, a chain letter in reverse. QCOM with its 16% revenue growth, vaunted $168 mil. in quarterly licensing revenue, and sublime $69 bil. market cap. should be left for nature to take its course. (Hint: Manufacturing, not licensing, is where most of the value is being created. QCOM, by virtue of its licensing agreements with Ericsson, Nokia, and Motorola will never be more than one or two percent of what those companies are, if that much. Indeed, some say that Ericsson receives from QCOM at least as much as it gives, for QCOM's patents rest upon an Ericsson substrate.) |
