CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST! Message Board

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Technology Stocks : CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST!

QCOM 172.72

-4.4%

Nov 4 3:59 PM EST

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To: Jim Lurgio who wrote (405)	8/9/1996 10:54:00 PM
From: Maurice Winn	of 1819

Jim, Qcom are including disclaimers because they don't want to get sued. I have been told that in the USA there are sufficient litigious people who believe that shareholders have a god-given right to make money that it is becoming conventional to include disclaimers. If shareholders don't make money, then either a stockbroker, or company they have invested in must be at fault. Hence my warning to people earlier in the thread that shareholders are carrying risk and if they don't want to lose money they should sell their shares at the all time high of $54. Fraud is a different matter altogether and can fraudsters can justifiably be sued. But all new things involve hope, some guesswork and some luck. To have to post disclaimers is a commentary on how ignorant investors can be. It is also cheering to me because it means there are investors who are so clueless that I'm much less likely to lose money than would otherwise be the case if they were all really clever and knew they could lose money on technological and market risk. It seems wise to include a disclaimer with everything, but a waste of resources. Qualcomm doesn't have enough chips for itself, so it isn't surprising that they don't supply others yet. They buy heaps from Philips as well, who can't supply them all they want. The 3 million handsets are going to be sold. There is almost certainly going to be some supply and demand upset as one or other aspects of the systems gets out of kilter. Same in all industries from growing onions to aviation services and memory chips. As far as demanding big bucks for them, even though they might be a monopoly handset supplier, they can't just charge what they like because people won't build CDMA systems if the overall cost to consumers makes it uncompetitive. The infrastructure prices, call prices and frequency costs have been set by competitive bidding. The handsets can only have anything left over. The bigger the advantage that CDMA gives, the higher the price they can get for the handset. But it is limited by the market prices of all other areas combined. As soon as there is a market for handsets of any decent size, you watch the competition come wading in to take some of Qualcomm's market share. Maurice

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