Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 154.58

-0.8%

1:33 PM EST

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To: bdog who wrote (10911)	5/27/1998 1:25:00 PM
From: Michael Allard	Read Replies (1) of 152472

bdog: I think the reason it is undervalued is because Wall Street views QCOM as a manufacturing company, and expects appropriate margins. I think Gregg has been suggesting that the margins are better than the street perceives, (though I don't mean to put words in anyones mouth) and maybe this move will help clarify. The investments and partnerships that QCOM enters into w/ the wireless carriers are strategic in nature, designed to jumpstart QCOM's infrastructure business. But since many are startups, they will incur significant losses for a period of time (Like Nextel). By spinning it off, we allow wall street to view the startups as startups, and allow QCOM to report in a similar manner as other manufacturing companies. So with margins coming in line, and the infrastructure business about to take off (Mexico/Australia), maybe we will see the stock appreciation that QCOM deserves.

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