Qualcomm Incorporated (QCOM) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 174.01

-0.3%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: waverider who wrote (94706)	2/27/2001 10:33:12 AM
From: Keith Feral	Read Replies (1) of 152472

Rick: I remember the great bear market of 1994 when people got the sheet kicked out of them. There was a major loss of capital for everyone. CSCO had a similar collapse from $60 to $20 and everyone wanted to give up on the market. I recall reading comments by the fund manager for White Oak Growth Funds. He sent out a letter saying something to the effect, "it's not where we have been, but it's where we are going." I remember thinking what a snow job he was trying to pull on his clients. He should have sold his technology positions at the top - right? CSCO proceeded to split probably 4 or 5 times since then. CSCO proceeded to witness the growth of routers to wide scale Internet networking. The growth of CSCO's intial business was nothing compared to the explosion of bandwidth for the Internet. QCOM is in the same situation today. QCOM engineered itself from a low margin R & D company to an extremely profitable company by also shedding it's handset and infrastructure divisions. Meanwhile, the growth of CDMAONE has made steady progress. However, there has been no penetration yet in the bigger GSM market which is converting to WCDMA. Leaving all of the politics aside, the introduction of UMTS networks and the upgrade of smaller GSM networks to WCDMA is going to create an unusual growth opportunity for QCOM since they will beneift from royalties and new chipset markets from the GSM conversion. If QCOM can successfully negotiate 1XEV as a parallel solution to GPRS, QCOM upside in 3G is going to be double current expectations. Also, the net present value of QCOM's discounted cash flow would be much greater in the near term since 1XEV can be introduced today - as opposed to GPRS handsets from ALA in 2004. At the same time, it is rumored that TDMA and iDEN companies are planning for a migration to 1xEV. We know that EDGE has been scrapped and the idea of GPRS in the US seems fairly remote. Why would NXTL or Cinglular go with GPRS when they can go with 1XEV?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next