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

To: freeus who wrote (55584)	12/21/1999 8:53:00 PM
From: RocketMan	Respond to of 152472

I've got to admit, that as much as I realize that the stock does not get any cheaper after the split, it was a psychological hurdle to add to my position at 465. Glad I did, though.

To: freeus who wrote (55584)	12/21/1999 8:54:00 PM
From: Voltaire	Read Replies (1) \| Respond to of 152472

I apologize if this has been posted! Qualcomm Inc. (NASDAQ: QCOM) Qualcomm Shedding Wireless Phone Unit, Analysts Upgrade Qualcomm's imminent sale of its wireless unit could provide synergies by way of turning the company into a semiconductor powerhouse. Analysts believe the stock has a long way to go, with plenty of momentum in the near term. One analyst believes it is one of the most attractive stocks in the NDX-100 index. A flurry of optimism has swept across Wall Street that Qualcomm Inc. (NASDAQ: QCOM), a maker of phone and semiconductors serving disparate markets, was going to shed some weight by divesting its underperforming wireless phone unit to either Motorola (NYSE: MOT) or Nokia (NYSE: NOK). Qualcomm's sale of the wireless phone unit is expected to enhance revenues by locking in long-term supply contracts with the respective buyer. With the stock up over 19-fold this year alone and a hefty $480 per share price tag, a wave of analysts from leading US powerhouses such as Lehman Brothers and JP Morgan expect the stock to climb even further, outperforming both the telecom sector and the broad market as a whole. The investment community has favored Qualcomm as a leading company in its sector. For example, while the telecom equipment sector is expected to show earnings growth of close to 30% over the next five years, analysts expect Qualcomm to post 5-year compounded earnings growth of over 35%. Leading technical analyst and Director of technical research at Prudential Securities, Ralph Acampora, fervently believes that Qualcomm is one of the most attractive stocks in the NDX-100 index. Expect earnings growth for the major telecom players in near term and early 2000. Experts in the telecom sector do not expect Y2K issues to affect operating results of telecom players. With a robust and dynamic capital spending program by the vast majority of telecom companies, this innovation is expected to fuel worldwide demand for high-end semiconductors. In fact, the evidence indicates that trend is already materializing with sales of wireless handset and infrastructure, ATM switching, IP routing and optical transport systems being the primary drivers in the fiscal fourth quarter. Analysts expect this will carry forward until at least second quarter of 2000. "'it's a great strategic repositioning' of its core and non-core assets" Wall Street has analysts revising one-year targets close to $600 per share. LTC's property portfolio is approaching $1 billion, with a market cap of only $250,000,000. At $8.37 per share, LTC is trading below its book value of $9.70. The pulse on Wall Street and the high-tech community has been unequivocal-innovation in chip technology will have an unbridled multiplier effect in increasing the attractiveness and profitability of high-end wireless products. Some analysts have revised their estimates upward to reflect the added synergies and focus of Qualcomm in the semiconductor end of the business. As Jeff Kvaal, analyst at Lehman Brothers elucidates, "it's a great strategic repositioning" of its core and non-core assets. Considered as one of the leading telecom analysts, Greg Geilling of JP Morgan has been a strong believer in Qualcomm, raising his one-year price target Tuesday to $570 from his initial $460 target. In addition, Kvaal argues that "the real upside is going to come to margins, we think that overall gross margins will jump 15 points". Although Kvaal was in the midst of revising his price targets upward from his initial $450 call, Kvaal emphasized "we're a big supporter of the stock, it will become a semiconductor company, essentially, and a great one at that". Technical Analysis Although the stock is no chump change at $480 per share, it has strong support levels at current valuation levels. The RSI indicator shows Qualcomm exceeding both the market indices and the telecom sector as a whole. Some downside risks include the speed at which Qualcomm executes its post-divestiture plan and its strategy of focusing on core competencies. This strong picture demonstrates strong promise of breaking new highs, with little resistance at these valuation levels. V --------------------------------------------------------------------------------