To: Jim Willie CB who wrote (51165 ) 11/20/1999 12:19:00 AM From: Ruffian Read Replies (2) | Respond to of 152472
Why Q Is Burning Up The Street> Fortune; Why Qualcomm Is Burning Up the Street Moon Shots Christine Chen These days, everyone's blase about hot tech stocks--this one's on a tear, that one's skyrocketing--yada, yada, yada. But even hardened skeptics have to be impressed by Qualcomm's warp-speed run. A year ago, the wireless communications company was trading at $25. By April, it had reached $100. In October, it broke $200, and by Nov. 12, it had hit $378. That's a 1,400% increase for one of FORTUNE's 100 Fastest-Growing Companies and a member of our new e-50 index. So why is Qualcomm flying so high? The ball started rolling in March, when Qualcomm and Ericsson made peace after a long dispute over a wireless standard called CDMA, which Qualcomm developed. That opened the way for Qualcomm to rake in royalties from CDMA users. Even more important, many investors are betting that CDMA will be the standard in the emerging arena of wireless Internet communications--a market with huge potential. There have also been some year-end fireworks. Fourth-quarter earnings, announced Nov. 2, topped estimates, and the company declared a 4-for-1 stock split--its second split in 1999. Meanwhile, investors who missed the initial move in the stock are trying to get in now, hoping it's not too late. Although some analysts question whether the Qualcomm surge can continue, many institutional shareholders are holding on for more gains. "In the long term, Qualcomm has the wireless business by the scruff of the neck," says Kevin Landis of Firsthand Funds. "They're going to be dominant." Issue date: December 6, 1999 Vol. 140, No. 11