Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 178.29

-1.6%

Dec 12 9:30 AM EST

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To: Robert Scott who wrote (6283)	12/12/1997 2:38:00 PM
From: Snowshoe	Read Replies (1) of 152472

From Briefing.com ... 13:50 ET ****** QUALCOMM INC. (QCOM) 51 1/4 -8 1/8. Shares of telecommunications equipment maker are taking a late drubbing this afternoon, although the stock has been back-peddling all this week on renewed concerns over the turmoil in South Korea and its impact on the company's bottom line. Today, the stock received some negative news when Schroder & Co. lowered its rating on the stock to a "perform-in-line" from an "outperform" and also cut fiscal 1998 estimates. The firm acted in this fashion because they fear that Qualcomm's royalty income could suffer from the financial crisis that is engulfing South Korea. Schroder lowered 1998 EPS to $2.04 from $2.30 a share even though the company generates only modest revenue from South Korea. However, because its royalty payments fall directly to the earnings line, it feels compel to bring numbers down in case the the financial impact prompts a significant decrease in royalty income. South Korea is the largest market for Code Division Multiple Access technology, and while the company has been impressive in growing sales and earnings by triple digits during the past year, its earnings in the coming year will likely get clipped due to the turmoil in Asia. But the sell-off in this issue may be overdone, considering the fact that the stock has already lost 28% of its value from its high.

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