Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 174.01

-0.3%

Nov 14 3:59 PM EST

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To: Ingenious who wrote (14156)	8/26/1998 4:44:00 PM
From: marginmike	Read Replies (2) of 152472

Look lets deal with facts not fiction. Qcom could go to 2 dollars a share, there are no guarantees. However your rational is wrong. Here are some points to consider 1) In Korea CDMA sales have tapered off a bit. However they are still quite strong. Using CDMA is a cost saving event for most Asian companies. 2) In Europe during the early 90's while a huge recession took place cell phone sales still grew! It is incorrect to assume that a downturn would do any more then slow(a bit)CDMA's growth. 3) Qcom cannot keep up with demand! If you heard the conference call. Even if demand tapered off it would give time to Q to build up for thw quick recovery that will come later. The fact remains that CELL Phones are more of a necessity then a luxury in most Businessmen's lives. That goes in Korea, that goes in India, that goes in Brazil! 4) Furthermore these phones are subsidized by big companies that have to increase capacity as fast as possible. Therefore phones will be given away if necessary by carriers. Qualcomm will still get paid in full. 5) Qcom manufactures phones in many of its markets(Brazil,Korea)therefore having a cost reduction due to currency exchanges for export to western markets. This also protects them from cost increases in those markets. The last point is about the markets. It is only my opinion, but it seems we are done with our correction. 2/3 of stocks listed are down over 20%. In the exception of 30-40 companies there has been an absolute bloodbath. The fact that today we are only down 80 points, given the Russians just defaulted the European and Asian markets were crushed I think is a sign that everyone who wanted out is out. The markets are treading water until earnings season, wherein people will realize that the world is not so bad after all. This is simply a re adjustment of markets which is not a bad thing. We might have a few bumps on landing but the decent is basically over.

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