Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ruffian who wrote (37433)	7/31/1999 9:07:00 AM
From: Wyätt Gwyön	Respond to of 152472

Mp, (the edges are singing) you put up a post recently on RFMD. This week's Barron's interview, in addition to pumping the Q, also gives RFMD a plug: Q: Another one, please. A: RF Micro Devices makes radio-frequency integrated circuits for cell phones and other applications. Its primary product is a power amplifier for the wireless industry. It improves the functionality of cell phones in three ways. Without getting too technical, this chip makes the signal clearer, more efficient, and helps to extend battery life by using less power. The company's main challenge these days is adding capacity in an orderly manner to meet increased demand. There are two ways to play the growth of the digital wireless business, the networks themselves or suppliers of equipment to them. We know RFMD's technology is in high demand. In a sense, they are an arms dealer to the wireless networks, where price competition could erupt. Therefore, we'd rather own an equipment supplier than an operator of a wireless network. Q: Where's the stock? A: Around 69. We think it could double in 12 months. Q: Again, why? A: The company earned 52 cents a share in the year to March 1999. The Street sees $1.15 this year and $1.65 next year. We see $1.25-$1.30 and $1.90-$1.95. We believe the market for cell-phone handsets can grow 30% annually over the next five years. Increased digitalization will enable these phones to offer more content. This requires more and better chips, and will be good for RFMD. We see its P/E increasing.