Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 138.87

+1.1%

Feb 9 3:59 PM EST

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To: Robert Scott who wrote (298)	12/8/1996 11:40:00 AM
From: Ramsey Su	of 152472

Robert, QCOM will make real money soon but this opinion is only based on common sense and may not have any real numbers. Being in San Diego, I have seen the explosive growth of QCOM during the past few years. QCOM has been hiring like there is no tomorrow. Billboards, buses, newspaper ads are common, even today. In the real estate arena, QCOM has single-handedly rescued the Sorrento-Mesa area by purchasing and leasing R&D as well as manufacturing space. Aside from a few big buildings, you see QCOM signs on practically every block of this area. Human resources and capital facilities are both cash burners. Training and integrating new employees on an hourly basis into the main stream has to be a monumental task. By all accounts, they have done a fantastic job and won some type of an award recently. Capital facilities that were purchased generated no returns until the last few months. These expansions were supported by a company that grossed $400some million in 1995 and $800some million in 1996. Looking forward, most estimates are more than double 1996 figures. Here comes the common sense part. The R&D part got to be reaching the stage of economy of scale. They may continue to hire but the rate should not accelerate at the same pace as gross revenues. The manufacturing side is the same. Teaming with Sony is a brilliant move. Whatever QCOM lacks in experience in manufacturing, SONY can supply with world class electronics manufacturing savvy. The sixty some licensees represent the most puzzling component to me. Why are't they generating a ton of high profit margin? But, it is Sunday morning and I have a lot more important things to worry about. Chargers at Pittsburg (looks like that is where you are located per profile). Suffering from the multiple personalties symdrone, we never know which Chargers team we will be watching from week to week. Ramsey

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