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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 176.67+1.6%Nov 12 3:59 PM EST

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To: qveauriche who wrote (103503)8/31/2001 5:26:43 PM
From: Art Bechhoefer  Read Replies (2) of 152472
 
>>With 7 rate cuts, surely credit will be looser in the coming quarters.<<

qveauriche--The problem doesn't have to do with interest rates or available credit but with total debt held by these companies (the service providers and most of the equipment companies, except for QUALCOMM). They've got so much debt that they can't afford to invest, no matter how cheap interest rates are. This is why I believe the service providers will do everything possible to convince consumers that the existing services are good enough--no need for anything but the most basic data access, no need for high speed, etc. Take a look at all the advertising these companies are doing. It's all oriented towards voice, with just a few crumbs thrown out for those who want to get stock prices or send short messages. It's a strategy guaranteed to make existing, inferior systems look okay to consumers, many of whom don't know the difference.

Art
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