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.

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

To: Boplicity who wrote (55823)	12/22/1999 2:05:00 PM
From: Manx	Read Replies (1) \| Respond to of 152472

Wednesday December 22, 1:40 pm Eastern Time Qualcomm dips as investors await phone division news LOS ANGELES, Dec 22 (Reuters) - The shares of Qualcomm Inc. (NasdaqNM:QCOM - news) fell on Wednesday after the high-flying mobile telephone technology company said it would make a long-awaited announcement about its handset manufacturing business. The stock of the San Diego, Calif.-based company fell as much as 10 points a share, or 2 percent, to about 486 in late morning trading on the Nasdaq. The fall was unusual for Qualcomm, which has racked up double-digit gains almost daily for several weeks. The company, which holds key patents on next-generation mobile telephone technology, has been the best performer on the Nasdaq this year, rising nearly 2000 percent from 25-5/8 at the end of 1998. The drop followed a statement by Qualcomm that it would hold a news conference at 1:30 p.m. PST (4:30 p.m. EST), ``regarding the sale of its phone business.' Qualcomm put its money-losing handset division up for sale in September, saying at the time it had several interested buyers and expected to strike a deal by the end of the year. ``This could be one of those things where you buy on the rumor and sell on the news,' said Mark Cavallone, an analyst with the S&P Equity Group. Companies like Finnish cellphone maker Nokia (NYSE:NOK - news) and South Korea's Samsung Electronics have been named as possible buyers. ``If they were to do any sort of deal with Nokia it would be positive,' Cavallone said. Swedish telecoms group Ericsson , which settled a patent dispute with Qualcomm and bought its terrestrial wireless infrastructure business earlier this year, said it was not interested in buying the telephone division. ``We're not involved in this,' said Ericsson spokeswoman Pia Gideon. ``We chose not to buy that unit when we purchased Qualcomm's infrastructure business last spring.' Even more important than the price for the assembly lines will be how the deal is structured so Qualcomm can supply chipsets for the phones and rake in royalties from licenses on its technology. ``There could be a lot of haggling over that. Depending on who buys it, you could see another jump (in the stock),' Cavallone said. Qualcomm sold 1.9 million phones in its fourth quarter and the business rings up about $1.6 billion in sales a year.