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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: michael_c who wrote (27438)	7/7/2000 5:15:05 PM
From: tinkershaw	Read Replies (1) of 54805

>Then why is todays news considered negative for QCOM?? I have seen no source state the Q's IP does not cover WCDMA. The major concern is uncertainty regarding (1) will Q get the same royalty rate and (2) will Q's chip dominance remain. As for (1) Q has been consistent in stating YES; as to (2) the company has hedged its bet a bit in statements stating that WCDMA might provide a more competitive chip environment - emphasis on "Might." It is this uncertainty, and the Street hates uncertainty with a passion, that it creating this unrest. In addition, Q is universally envied by its competitors. Envied to the point of hate. This hatred leading to all sorts of press releases framed in a manner targeted to make Q look bad. Ericsson itself admitted to outright lying prior to its settlement with Q in early 1999. The same environment existed with Rambus. Companies are like groups of people. The lone superstar is singled out and picked on behind its back by all the remaining normal folk. The press picks up on this, the stock falls precipitously, and we are stuck with the dilemma of believing the FUD (which is sometimes right) or salivating and diving in to what seems like a supremely undervalued stock at this point in time (for those holding through the 3G Tornado). My opinion is that I have no idea how far Q will drop. However, this whole commotion has nothing to do with Q business fundamentals. Qualcomm is the ruling Gorilla of the 3G tornado. Until such Tornado begins to blow all the dependent companies such as Nokia (as great of a company as it may be) will continue to posture at Qs expense if for no other reason it feels good to strike out at those who have power over you (allah, MSFT (where even RNWK's CEO Rob Glazer has told fibs), INTC, RMBS, CSCO, etc.) and to be able to get away with it to boot. It is human nature. For those who follow the markets and Gorilla's closely, we have seen this before and been here before. Time will tell, and it seems that time is on Qs side. I am looking forward to making money off of Q again in the future - all over again as its stock price continues to sink far below what is warranted by the news. Tinker

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