>>just like CSCO, SUNW, EMC, SEBL
>>reminds me very much of the Dell thread of 18 months ago.
A commodity company like Dell went 70,000 since their incorporation, but QCOM's timing and nature is a little different. QCOM has not yet realized anywhere near 10% of its eventual prospects when the world graduates to its technology, and dozens of new opportunities emerge such as telemetry and wireless everything, not just phones. All of that will be CDMA of some flavor, and QCOM does not distiinguish between the flavors. It just charges the same royaly, and that is held in European and Japan Courts last summer (QCOM vs NOK, NTT, MOT). The execution of this management is also just impeccable. Its always their products that come out first, and work best. They are closest among all competitors to delivering WCDMA chipsets. They are just that good. The cross licencing with TXN is essentially a royalty agreement with NOK. NOK has to continue using TXN chips in their handsets, because all their application software assumes a TXN chip. QCOM API is of course different. But by using TXN chips, NOK overcomes this problem, and sells CDMA phones all over the world, QCOM collects royalty.
Apreciate your concern, but there is no alarm condition here. All of this in my opinion. But please do not drop FUD.
If you think I'm wrong, go ahead and short the stock at this point, and see what will happen.
Good luck to you |
