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

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

QCOM 175.25

+0.6%

Dec 19 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Gaffer who wrote (1525)	1/19/1997 8:25:00 AM
From: Robert Scott	of 1819

Dennis, I too am a QCOM bull. Have been in and out of the company since 1993 - Gilder article. The only remaining issue is Can they make good money at this? While the answer may seem obvious, it has not been proven yet - Omnitracs had no competition when it was growing nicely during early 90's but it did carry a 40%+ gross margin and made nice profits. This stock will likely get ahead of itself this year but for the long term investor, I believe QCOM's strategy of partnering with Sony, Hughes & NorTel is brilliant(sp?). The strategy since 1991 has been to give up some of the profits in exchange for a larger, more vibrant market. QCOM could have had it all to itself & would have been further along technologically & product wise but it chose to go the standards route to provide quicker penetration of CDMA worldwide. This caused a delay to market for QCOM but now provides for a sweeping globalization of CDMA because so many companies are selling it. It was a trade-off & Jacobs himself has said that this may be the only regret he has - that by going the standards route, he got to market later than he wanted to but he feels that the tradeoff was a sound business one and said he would probably do it that way again if given the choice. At any rate, I am long QCOM and hope that the current earnings report which I expect to not meet published expectations, will cause a minor sell-off so I can buy more. All the analysts have said that the real earnings start next quarter due to the delay in booking some revenues per their contracts w/ PrimeCo, Sprint, and others. On the other hand, it could show that the company has stabilized gross margins in Comm Systems and expenses so that incremental revenues will flow to the bottom line.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next