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

To: Ruffian who wrote (34879)	7/13/1999 4:45:00 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 152472

nice shorterm stochastics on QCOM chart a reversal of mild proportions today nice closing action to piss in our shorts (pun) stronger new base has been constructed for next launch bigger potential momentum swing awaits us "expanding business" sale is now over future attractions: credit upgrade, Sony NAOps buyout, Siemens deal, earnings blowout take cover above, jim

To: Ruffian who wrote (34879)	7/13/1999 4:52:00 PM
From: llwk7051@aol.com	Read Replies (2) \| Respond to of 152472

S&P raise Qualcomm Inc ratings (Press release provided by Standard & Poor's) NEW YORK, July 13 - Standard & Poor's today placed its double-'B' corporate credit rating, double-'B' bank loan rating, and single-'B' preferred stock rating for Qualcomm Inc. on CreditWatch with positive implications. The CreditWatch placement follows the company's filing of an offering to sell 4 million shares of common stock. Based on the recent stock price, the offering could generate over $550 million. San Diego, Calif.-based Qualcomm's liquidity of $200 million at March 31, 1999, had been declining due to substantial increases in working capital and vendor financing activities. The stock sale could fund some of Qualcomm's potential $1 billion in finance commitments, its expanding working capital needs, and provide additional financial flexibility to support the company's evolving handset and other businesses. Financial flexibility is enhanced by $600 million of revolving credit agreements. In recent months, Qualcomm had favorably resolved a dispute with AB LM Ericsson concerning patents for ``code division multiple access' (CDMA) wireless technology, and sold its unprofitable base station manufacturing operations to Ericsson. Patent royalties are expected from substantially all CDMA manufacturers and will apply to equipment built for the next generation of the ``global system for mobile telecommunications' (GSM) wireless technology used throughout Europe and elsewhere, starting in about three years. Still, the company faces increasing competition and declining prices for wireless handsets, which represent nearly 50% of revenues, and price pressures on special-purpose chips which the company supplies to most CDMA equipment suppliers. Furthermore, the company is obligated to offer a substantial degree of financial support to several speculative-grade businesses. Qualcomm generates good cash flows from its truck fleet communications service, and provides services and equipment to the Globalstar satellite communications system. Assuming that the shares are sold at a price in the recent range and upon successful completion, the corporate credit and bank loan ratings would be raised to double-'B'-plus and the preferred stock rating to single-'B'-plus and the outlook will be stable.