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

To: Ruffian who wrote (39439)	9/2/1999 1:16:00 AM
From: Bux	Respond to of 152472

Heger said he doubts that squeezed margins for handsets, which is a relatively low-margin area, will have a strong effect on Qualcomm's earnings. The company's fattest profit margin -- about 50 percent -- comes from computer chip sets that are sold to cell phone manufacturers, he says. Now wouldn't the "fattest" profit margin come from royalties, >98% profit? And wouldn't royalties be the fastest growing segment of Q's business since all CDMA equipment manufactures must pay royalties and we must assume QCOM cannot maintain the high market share (>90%?) they currently enjoy with their chip business as CDMA products gain momentum? I'm a little surprised with the exaggerated reactions many have had to this little 12.2% decline in the share price! If you want to run with the big dogs you have to learn to pee in the tall grass! Patience really is a virtue. Those who get restless do so at their own risk. I guess I might become restless if I was a momentum investor or didn't understand the technology or the business but I was surprised this correction didn't happen sooner. That can be attributed (or blamed) on the incredible momentum this stock has. I do not expect this momentum to vanish because of one down day. If I am correct, this means patience is not a virtue for those who plan to wait too long for a good entry point. Bux