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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 178.28-1.7%3:59 PM EST

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To: noj who wrote (4714)11/17/2000 8:05:30 PM
From: A.J. Mullen  Read Replies (1) of 196952
 
Noj, this has been thrashed over several times. Maurice would say "This guy doesn't get it!"

Let's think of Spectrum as farmland, the government auctioned it off and companies paid a lot for it. Now some are having second thoughts as to the value of the crops that could be bought. The companies that own the land are short of money to develop it. They might be tempted to use some old tractors from nearby fields and save some money.
That would be a mistake because some companies are going to use the latest technology on their land, and bring in some new varieties that grow faster, look better, and taste better. The public will prefer the new crops. They were developped by Qualcomm, which owns the genome, the seedbank, and the only currently available means of harvesting.

Companies that stay with the old crops will still produce some, but the yields will be less, as will the demand and hence the price. Those that go wholeheartedly for the new may find themselves undercapitalized. They will have to look for more capital, and give up some share of the profits. Some might go bankrupt, in which case others will step in and get the land cheaply. The new owners will be in a better position to pay Qualcomm.

Ashley
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