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

To: slacker711 who wrote (46827)	11/1/1999 10:40:00 AM
From: Cooters	Respond to of 152472

<<When you have a PE that high, there should be NO doubts>> Slacker, Your point about valuation relating to W-CDMA royalties is well taken and presents what I believe to be an error in assumption for the "Q is too high" camp. Their assumption is the lock on 3G royalties is priced into Q and any disappointment would be severely punished. IMHO, there is no way a guaranteed royalty on all 3G phones sold over the next decade is factored in. To wit, I think the current price represents no W-CDMA royalties, leaving only an upside surprise as this legal issue unfolds. But, as Ed Hart was fond of saying, "We'll know in the fullness of time". Cooters

To: slacker711 who wrote (46827)	11/1/1999 1:30:00 PM
From: Bux	Respond to of 152472

I know that some on this thread think that Q should trade at a PE of 70-90 but I dont think I can justify this to myself until the ITU has announced the three modes of 3G and every manufacturer in the NTT Docomo W-CDMA contract has agreed to Q's royalty rates. Slacker, do you really think the ITU is that important? What if the ITU decides not to name CDMA as a 3G standard? Do you think that would preclude 3G CDMA from being deployed? Of course not. That's why the ITU must choose CDMA or lose more influence and respect. Do you think European countries would outlaw CDMA if it is not named by the ITU as a 3G standard? If they do, there will be a trade war between the U.S. and whatever countries foolishly erect protectionistic policies. CDMA will succeed because it has major competitive advantages over TDMA based technologies. It doesn't matter if it is W-CDMA or CDMA2000. Q gets the same royalties for each. BTW, why do so many here seem to think it matters so much whether it is W-CDMA or CDMA2000? Qualcomm can compete with either and have said they will if there is enough W-CDMA demand. Of course they wished it was just CDMA2000 since it is easier and cheaper to support one standard than multiple, but the competition has the same disadvantage. And don't tell me it is because Q's expertise lies not in W-CDMA but in CDMA2000. The experience they have applies to both except perhaps in a few details which I have no doubt will not be major obstacles and I'm sure they are working on these right now. Perhaps the competition will have a month or two jump on W-CDMA infrastructure because of last minute trickery with the standards setting process. Q still gets royalties from these sales and will be right behind with their chip solution. And don't think the Q cannot use trickery also. Something tells me Q is on top of this. Bux