Copy of a (self-described) "cry-baby" e-mail I just sent ...............................................
Almost every fiscal quarter, as Qualcomm approaches their earnings release date, something usually comes out within the last week or so to "crush" the price of QCOM, so that (as Sharon and I always say) if and when Q announces fabulous earnings news, and the stock rallies sharply ... it will be starting the "ramp" up from a low level, and the good news will merely get the share price back to where it was before the "something" that just "happened" to "come out."
Usually, the "something" is an inflammatory, absurd so-called "research" piece from one of the handful of Wall Street firms that only have negative things to say about Qualcomm.
(And then, since the earnings announcement is imminent, QCOM is in an S.E.C. proscribed "quiet period," and cannot de-bunk the inflammatory, absurd so-called "research" piece).
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One week ago today (Friday 10/21/05) was options expirations day. QCOM (of course) gravitated towards a "strike price." This time, it was $45. The close at 4:00 PM on Friday 10/21/05 options expirations day :
$45.00
On Monday, interested observers watched carefully to see if the $45.00 Friday close appeared (in retrospect) to be "phony."
QCOM close :
Friday 10/21/05 ........ $45.00
Monday 10/24/05 ..... $45.70
Tuesday 10/25/05 ..... $45.16
Wednesday 10/26/05 $44.85 (with intra-day high of $45.99) (high of recent rally) (note "obsession" with prices ending in .99 or .00, as usual)
So ... three days in a row all confirming that $45.00 on Friday was "real," and Wednesday's high of $45.99 within $0.30 of a new 5-year high.
Then, on Thursday 10/27/05 (yesterday) a nearly $2.00 trading range on Q, (with no reported news), and a very weak close of $43.05
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This morning :
news that Broadcom (those losers who can't sell an ASIC chip to anyone, if their lives depended on it) joined forces with other losers who claim that they can't compete with QCOM, to launch another one of those :
QCOM has a stranglehold on some portion of the CDMA wireless market.
QCOM hit $39.68 this morning, down over $6.00 from about 48 hours ago.
Now ... some SI posts :
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Message 21833711
Ericsson and others complain to EU over Qualcomm
Fri Oct 28, 2005 06:45 AM ET
STOCKHOLM, Oct 28 (Reuters) - Ericsson (ERICb.ST: Quote, Profile, Research) said on Friday that it and five other firms had complained to the European Commission over alleged anti-competitive behaviour by Qualcomm (QCOM.O: Quote, Profile, Research) in licensing patents for 3G mobile technology.
Ericsson said complaints had been filed by itself, Broadcom (BRCM.O: Quote, Profile, Research) , NEC (6701.T: Quote, Profile, Research) , Nokia (NOK1V.HE: Quote, Profile, Research) , Panasonic Mobile Communications and Texas Instruments (TXN.N: Quote, Profile, Research) .
"The companies state that Qualcomm is violating EU competition law and failing to meet the commitments Qualcomm made to international standard bodies around the world that it would license its technology on fair, reasonable and non-discriminatory terms," Ericsson said in a statement.
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Message 21833921
URL for 7/6/05 Q press release : "Q responds to Broadcom's latest complaint" ...................
qualcomm.com
to use as a possible primer for thinking along the lines of :
Wall Street is continuously complaining that Qualcomm has such a SMALL percentage of the W-CDMA market,
while
Broadcom (and now, in a moment of "Deja Vu" ... Broadcom and a few others) are saying Qualcomm has a hopelessly strong stranglehold of the W-CDMA market.
Logic would say that both cannot be correct.
Jon.
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text of that 7/6/05 Q press release : "Q responds to Broadcom's latest complaint" :
QUALCOMM Responds to Broadcom's Latest Complaint
QUALCOMM Believes Antitrust Claims Are Meritless
SAN DIEGO — July 06, 2005 — QUALCOMM Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today stated the antitrust complaint filed by Broadcom Corporation on July 1, 2005 is meritless. Broadcom's accusation that QUALCOMM has not lived up to its commitments to standard setting organizations to license its essential patents on fair and reasonable terms is belied by the more than 130 licenses that QUALCOMM has granted to a broad range of companies. These licenses-including agreements with the world's largest and most sophisticated manufacturers of wireless telecommunications equipment-make QUALCOMM's patents the most extensively licensed portfolio in the cellular industry. QUALCOMM has granted and announced far more licenses under its essential patents than any other company claiming to hold patents essential to the CDMA2000, WCDMA or TD-SCDMA standards. QUALCOMM's extensive licensing program has fostered the widespread adoption of its leading edge technologies and promoted vibrant competition throughout the wireless industry. QUALCOMM's licensing practices are lawful, fair, reasonable and pro-competitive.
Broadcom's allegations regarding supposed monopolization by QUALCOMM of a so-called "WCDMA market" are likewise demonstrably false. With many companies selling commercial WCDMA chipsets, competition among WCDMA chipset suppliers is healthy and intense, and QUALCOMM has supplied only a small percentage of the WCDMA chipsets sold to date. The inability of Broadcom to attract customers for its WCDMA products, as admitted in Broadcom's complaint, is indicative of this highly competitive environment and not of any ostensible anticompetitive activity by QUALCOMM.
"This case, like the earlier patent cases filed by Broadcom against QUALCOMM, appears to be a desperate attempt by Broadcom to gain bargaining leverage through meritless litigation. Because Broadcom does not hold essential patents for the important cellular standards, Broadcom must feel compelled to resort to these kinds of measures rather than continuing to negotiate for licenses in good faith," said Louis M. Lupin, senior vice president and general counsel of QUALCOMM. "Broadcom's unfortunate preference for the litigation forum rather than the negotiating table will require QUALCOMM to proceed with litigation of its own."
Broadcom has a history of initiating litigation and International Trade Commission (ITC) proceedings that do not turn out well for the company. Broadcom's patent litigation and ITC proceedings against Intel resulted in Broadcom's paying Intel a $60 million settlement in 2003. Similarly, Broadcom filed patent claims against Microtune, Inc. in court and in the ITC with the outcome a $22.5 million settlement payment from Broadcom to Microtune in 2004. Broadcom's patent infringement claims against Agere Inc. suffered a similar fate with Broadcom reporting a $27.5 million charge to settle that litigation late last year.
QUALCOMM also confirmed that it believes that the patent infringement claims filed in May of this year by Broadcom in federal court and in the ITC are without merit and that QUALCOMM looks forward to proving that it has not infringed any of the asserted patents.
QUALCOMM Incorporated ( qualcomm.com ) is a leader in developing and delivering innovative digital wireless communications products and services based on ...
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