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

To: Michael who wrote (33257)	6/25/1999 7:25:00 PM
From: Morgan Drake	Read Replies (4) \| Respond to of 152472

Great Post from Yahoo (I know, I know --- folks from the wrong side of the tracks). Nevertheless, I like the "physics" of the argument. >> Think about economics... by: Explorer_at_large (36/M/Southwest) 23369 of 23369 >> I presume most saw the NASDAQ short interest numbers for Qualcomm---over eighteen million shares sold short! Somebody, or should I say, some bodies, are short almost $2.3 billion worth of Qualcomm---and given the stock's rapid quintupling, these boys and girls probably have a market-to-market loss in excess of $1.5 billion. This is an almost imponderable hit for the hedgefunds that most likely account for the majority of this short interest. Understand that the managers of these funds generally participate in 20% of their funds' gains or losses---so these brain children have hosed themselves out of something close to $300 million. >>So when you ask why did H&Q publish a negative piece, right before the June quarter end, just as the stock was rallying to new highs---maybe this will make more sense when you consider the amount of pressure that such hedge funds can exert on an analyst or two. The boys are desperate to stop the stock's ascent---or to at least slow it down. Each uptick is tantamount to blood draining from their veins---the trouble is---they ignorantly and foolishly bet against the wrong horse. >>Lehman's Tim Luke just finished traveling with Qualcomm's management. His report cited accelerating strength across every product line and, as a consequence, he raised his quarter and yearly estimates. Obviously Tim, and Qualcomm management, does not see any signs of business weakness. CDMA is winning around the world, business is booming, earnings are accelerating and the only cloud on the horizon is the attempted retaliation by short-sellers who have hosed themselves out of a fortune. It's actually kind of funny when you think about it. >>Poor poor short-sellers---baby's gonna need lots of new shoes.