CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST! Message Board

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Technology Stocks : CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST!

QCOM 174.76

+0.3%

3:59 PM EST

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To: Maurice Winn who wrote (1427)	1/9/1997 11:59:00 AM
From: kech	of 1819

Hi Maurice - I think what might also be holding the company back is that Zacks and presumably First Call have '97 earnings for Qualcomm somewhere in the $1.10 range but '98 earnings only in the $1.35 range. (This is from memory so I may be off somewhat). A $.20 increase from '97 to '98 is pathetically small given our collective understanding of the situation. On the other hand, somebody recently published on this thread that Lehman forecasts $2.35 for '98. This is a huge jump and indicates 100% growth rather than 18% growth that the consensus analysts seem to indicate. So the answer has to be, anything that makes other analyst's realize the essential brilliance of the Lehman brothers forecast will send this stock skyward! (Between us, let's hope he is right.) I guess the fear must be that QCOM will have profitless growth. Margins on production of handsets will stay where they are - essentially 0, and R&D/Sales will continue to increase dramatically even as Sales skyrockets. Seems like peculiar assumptions to me but how else do they get $1.35 for '98?? A side note Maurice, as an academic I take umbrage at your statement "Qualcomm's profits will be of academic interest again this quarter as they haven't been paid for much stuff yet, but it is all set to avalanche now." You might as well say Qualcomm's profits will only be of interest to sheep in New Zealand!

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