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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Rick who wrote (32188)	6/12/1999 10:32:00 AM
From: Art Bechhoefer	Respond to of 152472

Fred, one way to predict QCOM growth is to look at recent projections of increasing wireless phone use in domestic and foreign markets. Some sources are estimating an overall increase of about 300 percent in the next four years. Most of that increase will be in countries whose wired systems are incapable of meeting modern needs, and in those countries CDMA has the greatest likelihood of being adopted (since they have almost nothing else now). If one assumed that CDMA would take only half of that increase (a very conservative estimate) and then applied that assumption to the current QCOM sales of handsets and ASICs, plus their current royalty payments, you would be able to get a reasonable estimate of both sales and earnings (based on gross profit margins at current levels). All of this is sort of a worst case scenario, but it translates into earnings growth in the 50 percent range, at the very least. I don't believe the shares at their present price reflect this growth potential.