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

To: Ruffian who wrote (38427)	8/21/1999 2:25:00 AM
From: REM55	Respond to of 152472

To all: My apologies if this has been posted previously, but it deserves our attention. Regards, REM55 From Multex: Meanwhile, QUALCOMM Inc. (QCOM: research, earnings) shares have been on a tear for much of 1999. The company's core division multiple access (CDMA) technology has become an industry standard in wireless communication and now shapes up as the fastest growing standard in this area. QUALCOMM earned $0.75 per share in the June quarter (excluding one-time charges) versus $0.17 in the year-ago period. In a July 20, 1999 report, Mark A. Roberts and Michael A. Whitfield of EVEREN Securities rated the shares 1-OUTPERFORMER and stated that the stock "should be a core holding for any investor interested in wireless communications technology." They expressed their belief that "investors continue to underestimate this company's earnings power" and say "We may also be too conservative in our estimates as well." If these observations pan out, QUALCOMM could appear on this same screen after third quarter earnings are reported. Subsequently, Motorola announced its intention to be more aggressive in the CDMA market and that put some pressure on QUALCOMM shares. Roberts and Whitfield analyzed the issue and on August 4, 1999 concluded that "Motorola's threat is over-blown." The analysts pointed out, among other things, that QUALCOMM keeps their products "at least one generation ahead of competitors while pricing aggressivley," that customers are showing "little serious interest in an alternative to QUALCOMM" and that their stock valuation model had already allowed for erosion from QUALCOMM's present 90%-plus market share. Apparently, investors agreed with the brokerage's August 4th view that the stock's weakness presented "a buying opportunity." The price turned back upward and now stands above where it was at the time of the July 20th report.