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

To: gdichaz who wrote (37224)	7/26/1999 3:09:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 152472

Briefing. Com> TELECOM EQP....3/2.......7/20......(-) Comment: Over the past few months the group actually exceeded our optimistic expectations, significantly outpacing the rest of the market. Investors continued to pay hefty premiums based on solid top and bottom line growth prospects. Industry benefitting from the explosive growth of the Internet; the convergence of voice, video and data; the concurrent need on the part of service providers to update their infrastructures in order to meet the demand for increased bandwidth; rapid growth in the small-office/home office (Soho) market; and growing international demand. Component issues were also underpinned by prospects for consolidation (due in part to the merger activity in the telecom service group). Participation in the rally also fanning out to include a number of the second and third tier companies, such as Advanced Fibre, Ciena and Aware. But while the past few months were great, Briefing.com contends that the group has run too far ahead of its fundamentals and that a period of backing and filling is about to commence. The consolidation in the services area is also a concern as it reduces the number of players and shifts pricing power. As such we are lowering our near-term rating from 2 to 3, while maintaining our long-term outperform rating. Stocks: ADC Telecommunications (ADCT), Advanced Fibre Communications (AFCI), Andrew Corp. (ANDW), Aware (AWRE), Ciena (CIEN), E-TEK Dynamics (ETEK), General Instruments (GIC), JDS Uniphase (JDSU), Lucent Technologies (LU), PairGain Technology (PAIR), PictureTel (PCTL), Qualcomm (QCOM), Scientific-Atlanta (SFA), Teligent (TGNT) and Tellabs (TLAB).