<See the swing on QCOM. Wow. Should have covered on the low and looked for re-entry.>
I know I've sort of beat the drum on QCOM not being a short, but perhaps I should state the case a tad more strongly:
1.) There are 2 technologies of wireless in the U.S., TDMA and CDMA.
2.) CDMA {QCOM invented technology} is far superior to TDMA, depending upon who you listen to... 4x to 8x {my recollection, don't hold me to this, do your own DD} more capacity for THE SAME INVESTMENT.
3.) 2/3 of the country uses TDMA, including ATT, NEXTEL and several other biggies.
4.) Networks are becomming constrained and upgrades are needed at ALL the carriers, especially when we start talking about cruising the web on your phone. Whether or not this actually takes off in a big way may be irrelevant, as the people will probably at least want the option to do it.
5.) QCOM and CDMA allow fast easy migration to wireless fast data and streaming stuff w/ 1X, coming out next year.
So??? Why NOT short it.. its probably overvalued... let's say it IS overvalued. The problem with shorting it is this: all networks need upgrading, if ATT, Nextel, or other large carrier announces the switch to CDMA, which those involved in wireless believe is just a matter of time? POOOOOF! The stock will double IMO. It will be a LLCF UP, and shorts will be toast. This stock is dangerous. Be warned.
MM can probaly further enlighten/correct... but I think he'll agree, watch out being short this thing.
DAK |
