Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 177.78

-2.2%

Jan 9 9:30 AM EST

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To: slacker711 who wrote (142749)	6/13/2006 3:23:27 PM
From: Art Bechhoefer	Read Replies (2) of 152472

Nokia would need to make a one-time lump sum payment whenever the final agreement is put into place. If Nokia thinks it can continue selling handsets that use QCOM patents, it would pay not only a lump sum, as you suggest, but might have to pay treble damages for intentionally infringing the patents. That outcome is highly unlikely. Nokia would never be dumb enough to go on selling QCOM IP without a license and without paying a royalty fee. No, the real trump card here is that Nokia would have to stop selling handsets using QCOM IP, and thereby jeopardize their number one position as the largest maker of handsets. Despite the fact that many investment analysts are worried about the patents (one cause of the recent price weakness), QCOM continues to exceed earlier expectations. They just raised guidance today for the third quarter (the current one ending June 30). We're looking at a growth rate in earnings approaching 50 percent over last year, with the stock still trading at a P/E less than 30. I wonder how long it will take for value investors to clear up that distortion in the market. Art

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