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.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: uel_Dave who wrote (7307)	10/1/1999 6:50:00 PM
From: uel_Dave	Read Replies (2) \| Respond to of 54805

Qualcomm on Rule Breaker Radar fool.com ............from Paul Larson's article of TMF... Let's now look forward. Following an article of two weeks ago where I got an overwhelmingly positive response, I figured today would be a good day to again turn on the Rule Breaker Radar (RBR) to scan the investment landscape for companies that are breaking rules. For those who may have missed the first installment of the RBR, check here. Either way, below are the criteria that cause the RBR to blip: 1) The top dog and first-mover in an important, emerging industry. 2) A sustainable advantage gained through business momentum, patents, visionary leadership, and/or inept competition. 3) Excellent past share appreciation measured by a relative strength of 90 or higher. 4) Good management and smart backing. 5) The greater the consumer brand, the better. 6) A significant constituent of the financial media is recently on record for calling it overvalued. Let me again warn that I am casting a fairly wide net here; we're looking at these companies because they are little more than potential Rule Breakers. Perhaps one or two of the seven companies that have now shown up on the RBR will eventually find their way into this portfolio. Perhaps none of them will. Time will tell. All right, let's fire up the radar and see what's out there.... Qualcomm (Nasdaq: QCOM) What they do Qualcomm is one of the world's largest wireless technology companies. The majority of the firm's products are based on its proprietary Code Division Multiple Access (CDMA) technology, one of the emerging standards for next-generation digital wireless systems. The company sells CDMA-based phones, chips, and software. Moreover, Qualcomm licenses its CDMA technology to other wireless equipment makers. Why is it on the radar? One of the reasons Qualcomm is showing up on the radar is because it has had an absolutely stunning run over the past year. Check out the chart. More importantly, the company has numerous patents that protect its CDMA technology, and it looks as if CDMA has all but locked up the lead to become the next standard for wireless digital systems. Qualcomm's management has smartly positioned the company to both vigorously sell chips for wireless applications and rake in high-margin royalty income. Even though Qualcomm has many of the qualities of a Rule Breaker, it looks like it is already in the late stages of Breakerdom. The company has a market capitalization near $30 billion and is already a member of the S&P 500. In fact, with a cash-rich balance sheet and a dominating position in its industry, Qualcomm may even be considered a Rule Maker. For more reading about Qualcomm, check into the recent Daily Double linked below. Since one of the Rule Breaker qualities is strong past performance, it should come as little surprise that many of the stocks that end up being highlighted in the Daily Double are also ending up on the RBR. - Daily Double: Qualcomm (8/12/99) fool.com - News: Qualcomm Recovers from Latest Freak Out (9/14/99) fool.com