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

To: mthomas who wrote (40935)	9/14/1999 12:03:00 PM
From: MileHigh	Respond to of 152472

m, Yes, my point was not to be critical (sorry if it came across that way), but to highlight that this piece of news demonstrates the folly of trying to predict stock prices NT and/or pending news and deals. I love to read everyone's opinions and really enjoy this thread. But you know what they say about opinions...!? <gg> FWIW, I too mentioned that a fabless biz model with a dominate position staked out is far more advantageous than a lower margin manu biz~ agreed on ROE, ROI, et al... MileHigh

To: mthomas who wrote (40935)	9/14/1999 12:12:00 PM
From: 10K a day	Respond to of 152472

It's Gone....

To: mthomas who wrote (40935)	9/14/1999 12:15:00 PM
From: RoseCampion	Read Replies (3) \| Respond to of 152472

added cash into the kitty by way of improved market cap due to improved ROI due to distance from manufacturing the handsets (capital intensive very low ROI) could be very advantageous if the bigger kitty were put to work on the core technology which is very high ROI, thus again improving market cap... Good point - I suspect the ratio of ROIs is huge, something on the order of 10-1 or larger. I'd also point out the semi-intangible benefit here: if Q is not directly involved in phone manufacture, it may be seen by other phone-makers as more of a partner, less of a competitor, with longer-term positive effects on total ASIC and software sales. If the margin on a Thinphone is 10% and the margin on the ASIC sold to someone else is 40%+, it doesn't take too much new ASIC business to offset the loss to earnings from saying goodbye to the subscriber division. All the same, though, I think I still prefer the thought of a JV and/or contract ('fabless') manufacturing partnership which still allows the phones produced to be Q-branded - gotta love any opportunity to keep the Qualcomm name in front of the buying public. Did someone say "sure is a nice Qday?" yet? <g> -Rose-