Michael, reflecting on the events last week, I think the timing was very unfortunate. As a long term holder of QCOM, the net effect is really zero.
If you recall, Dr. J was interviewed the day before the $850M announcement. Dr. J has never been known to hype QCOM and his charisma is not exactly at par with Gates, Ellison, McNeal etc. I have to assume that while he was being drilled on TV, he already knew that $850M of orders are in the books but he can't say a thing.
If only the interview was a day after the announcements, he could have easily answered those questions with authority.
Second piece of bad timing was the 2 order announcements came on the same day. It would have had a much bigger impact if they were announced a few days apart. It is my understanding the Sprint announced earlier than planned because they don't want to appear too far behind Primeco.
As for next Q's earnings, I think the number is going to be overwhelmed by news of revenue, back orders, future outlook etc etc. Use BAY as an example. Their E met expectations but revenue was lower and the future does not look as bright as the street expected. In QCOM's case, E may disappoint but the future couldn't look brighter. If Dr. J would turn the podium over to a better spokesperson when the earnings come out, QCOM could start its rise to 80, 90 or more.
Ramsey |
