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

To: Maurice Winn who wrote (41521)	9/16/1999 5:58:00 PM
From: Ruffian	Respond to of 152472

Very Astute Observation> Handset royalties... by: Explorer_at_large (36/M/Southwest) 37992 of 37992 T-W-A: royalties are paid by the manufacturer based on the transfer price to the carrier...carriers therefore fund the royalties implicitly, but not explicitly. The acquirer of QPE et al will be motivated by strategic interest rather than pure economics, i.e. the acquirer will most likely be a large, well capitalized telecom company that currently is NOT participating in the North American CDMA handset space. The purchase of Qualcomm's business unit, overnight, would yield high teens marketshare and make the company a 'player' in the market. Several Japanese, European (and even Korean) companies come to mind. Presumably such companies will bring manufacturing scale and supply chain access that was unavailable to Qualcomm. This will why they will buy they thing...as for Qualcomm...the chance of it allowing somebody to produce CDMA equipment without paying royalties is on par with the likelihood of the company buying a semiconductor fab...which is another way of saying, the odds are equivalent to Clinton taking an oath of celibacy AND LIVING UP TO IT, i.e odds<=0. Handset royalties are the KEYS TO THE CDMA KINGDOM...and management ain't gonna safe harbor a royalty-free participant...no how, no way...it would make more sense to shut the business unit down! By the way, you all let me off the hook with a profound arithmetic goof vis-a-vis my earlier post. Qualcomm's handset capacity is in excess of two million units per quarter (not per annum). So the ASIC volume would be eight million units, revenue would be closer to $200 million, and the incremental ASIC margin would be closer to $60 million. When coupled with the 3.5% royalty, this implies operating income circa $130 million versus something presently one-third of this amount.

To: Maurice Winn who wrote (41521)	9/16/1999 6:17:00 PM
From: waverider	Respond to of 152472

Mq, you are a scream! Rick <H>

To: Maurice Winn who wrote (41521)	9/16/1999 6:32:00 PM
From: Cosmo Daisey	Read Replies (1) \| Respond to of 152472

Maurice, """I think investors should not be sucked into this TA stuff or they will be likely to lose their shirts. Of course, like a casino, there are many, many winners who shout loudly from the rooftops. The losers slink away quietly, embarrassed. """ Some people are pretty good at it and it works for them. Like anything else in life, it doesn't work for everybody. Simple T/A is the best. Forget about Gann, Fibbonacci, MACD, and stochastics. The thing about Elliott Waves is there is always another one coming. All those indicators sell books and get the developer a spot on CNBC. Head and sholders? Depends on who's lookin at it. You should be able to look at a chart and know instantly what to do, thats it, T/A. The trend is your friend but there are many trends in a chart. Short term, long term, real long term. I have given hundreds of talks on T/A and the room is always full of people that have spent hundreds on programs that don't work, they don't need, and can't figure out. Follow this link, look at the chart and make a decision, its this simple. finance.yahoo.com Pick stocks anyway you want to, thats not important. Whats important is what you do after you buy them. Its not important how much you pay for a stock. Whats important is if you make money. Long term, short term, mid term, charts have a place in investing. Oh ya, look at this chart also and decide. finance.yahoo.com cdaisey@i'm-confused-by-this-stuff.com