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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: llwk7051@aol.com who wrote (5)	7/22/1999 12:32:00 AM
From: JGoren	Read Replies (2) \| Respond to of 13582

Ramsey, you listed a number of possible uses for the funds; the company has many uses aside from just the capital needed to support growing receivables, which even if paid timely, would be a drain on a company enjoying dramatically increasing sales. In a pm today, I was told that partners on the street (i.e., not just flunkies) think that Dr. J is going to strike hard and very fast to ramp up. Maybe a merger or buyout. It's very important that the company move quickly to maintain its technology lead, gain market share while it's well ahead of the competition. My bet is on Europe, possibly handset jv with Siemens. Siemens has wanted to be in the biz for a long time; even wanted to buy the Q awhile back. From what little I know Siemens has the wherewithall to make an impact in Europe and open doors. I could see a deal where Siemens can sell Qualcomm-designed phones as soon as the production lines are set up, and who knows, maybe under the Siemens label to get immediate entree to the European carriers and consumers. As far as the Palm Pilot scenario, which has been bandied about, I don't know much about that company but don't think that deal would be done for cash, anyway. But the war chest on the books sure could help in a stock deal. It takes cash to fund the transition after a merger, and presumably there would be lots of new projects, products that could be initiated. One final thing. I have heard that the handset division is undergoing a philosophical revolution--bring products to market faster--faster product cycles. Takes a lot of money to bring a product to market. As far as increasing the number of shares in the offering, it's obvious that the demand for shares was so great, the underwriters reported that a larger number of shares could be sold and recommended getting the cash now under favorable terms. Remember, the anticipated cost of the offer is $600,000; doesn't cost any more (other than filing fees, that sort of thing tied to the number of shares) to get an extra 300 million. If the company waited, you never know what the market conditions will be and you have to incur the legal fees, etc. to do another offering. The company wisely jumped at the chance.

To: llwk7051@aol.com who wrote (5)	7/22/1999 9:00:00 AM
From: llwk7051@aol.com	Read Replies (1) \| Respond to of 13582

Handset information from Nokia earnings report: Market to Triple Nokia has 23 percent of the global market, according to market researcher Dataquest. Motorola has 20 percent, while Sweden's Ericsson AB has 15 percent. The Helsinki-based company expects the market will triple to 1 billion subscribers by 2003. Worldwide sales of cellular phones rose 51 percent to 163 million units last year. ``At some point everyone will have a mobile phone, and there are more players coming into the market,' said Edward Werner, a portfolio manager at Banque Baumann et Cie. SA in Luxembourg, adding he might buy the shares if they decline further. The cellular phone unit saw operating profit rise 105 percent to 671 million euros, while sales in the unit rose 58 percent to 2.922 billion euros. Some analysts expected sales to rise as much as 85 percent. ``Strong demand for our very competitive range of mobile phones continued and we strengthened our positions as the number one mobile manufacturer,' said Chief Executive Jorma Ollila in a statement. Nokia said sales growth may exceed its earlier target of 25 percent to 35 percent a year. In the first quarter, Ericsson's mobile phone sales declined 12 percent, the third consecutive quarterly decline, while Motorola's rose 8 percent in the period. Ericsson's earnings are due tomorrow. Nokia said it estimates there was 375 million cellular phone subscribers in June. It also said 40 percent of the phones sold were sold to existing subscribers, who upgrade their phones to a newer model. Robert D.