C2- Re: Coordinated attacks and Qualcomm’s
I agree with your rejection wrt “Q needs to make a bold public move here and acknowledge that it is under attack ....”.
Over the years, it has been proven that Qualcomm and the CDG are no match against NOK/ ERICY and the GSMA in a public PR shoot-out. For some reason (advertising $$??), those folks have little difficulty getting their message out early and often (see following list just over the past few days).
However, on occasion it’s good to see the Q issue a statement to counter the most blatant attacks (Korea royalty ceasing / NOK – CDMA in decline, etc).
So, what’s the Q to do?-
1. During the upcoming earnings report-
1.1. exhibit confidence in the future via announcement of stock repurchases (as you stated)
1.2 exhibit further confidence by increasing the authorization from its current $2.5B amount.
1.3 Increase FY06 EPS guidance
2. Bill K during his recent Blair presentation made mention of the “pressures” to a certain degree, in fact the stock being under pressure. Further, in prior presentations the Q discussed to a limited extent their response to the EC complaint case.
3. In the past few days the “coordinated attacks” quickened to include –
3.1 CDMA “flips” in India, S. Amer, Australia/ New Zealand.
3.2 India royalty issue / non-competitive CDMA handset pricing
3.3 Korean anti-competition filing by TXN and BRCM.
4. Since a campaign of PR volleys and public presentations highlighting these issues appears to only stoke the fire, perhaps a new FAQ section on the Q’s website with brief but factual responses to these new “attack” issues as they arise would be a more appropriate and effective way to respond. (For one, I'd like to see factual documentation of GSM IPR rates- BK noted some of Q's customers reported such)
C2 (if still at home / surfing the net) as and attorney, I’d be interested in your thoughts as to how much info the Q can / should publicly disclose in a FAQ type forum to support its investors during the next nine months of “rocky road- Rich B” without harming its various upcoming legal cases?
Again, it helps somewhat that the Q / we’ve been through this before on several occasions, with the abundance of facts on our side , and a history of positive outcomes.
Recent “attack” headlines
Today, Mon, Jul 3, 2006
• GSM telecom vendors say their system outpacing CDMA
at Reuters (Mon 12:16pm)
• Broadcom and TI take action on Qualcomm
at FT.com (Mon 12:10pm)
• Broadcom files antitrust complaint in South Korea
bizjournals.com (Mon 11:36am)
•
• U.S. Companies File Qualcomm Complaint
AP (Mon 4:15am)
Sun, Jul 2, 2006
• U.S. Companies File Qualcomm Complaint
AP (Sun 10:38pm)
• TI, Broadcom complain to S.Korea FTC about Qualcomm
Reuters (Sun 10:29pm)
• UPDATE - TI, Broadcom complain to S.Korea FTC about Qualcomm
at Reuters (Sun 10:22pm)
Fri, Jun 30, 2006
•
•
Wed, Jun 28, 2006
• Qualcomm Resists Demands for Royalty Cut
AP (Wed, Jun 28)
•
• Telecom Stocks: Telecom stocks gain momentum, inch higher
at MarketWatch (Wed, Jun 28)
•
• UPDATE - Qualcomm says India royalty 5 pct, eyes cheaper sets
at Reuters (Wed, Jun 28)
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