Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 174.69

0.0%

Dec 24 12:59 PM EST

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To: limtex who wrote (130262)	7/21/2003 7:37:40 PM
From: Art Bechhoefer	Read Replies (2) of 152472

Lexmark dropped because the company predicted lower earnings in the next quarter. Lexmark derives virtually its entire income from what has become a commodity business. While it makes money on replacement ink cartridges designed for its own printers, it doesn't really have any price or performance advantages over its competitors. Furthermore, one of the major changes in its business has come from the Compaq HP merger, since before the merger, Lexmark was a major customer for Compaq. The parallel with QUALCOMM would exist only if suddenly QUALCOMM lost a big chunk of its chip business to another competitor. That doesn't look like it would happen in the next three or four years. Finally, unlike Lexmark, which sells products in a mature part of the industry, QUALCOMM is positioned in the fastest growing technology sector. Of course, as we know, a lot of analysts will yell their heads off if QCOM guidance is lower than earlier. They will remain quiet, however, if the guidance is positive. When all is said and done, it's the financial strength of the company and its ability to innovate faster than its competitors that really counts. Art

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