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

To: 100cfm who wrote (56129)	12/22/1999 7:44:00 PM
From: uel_Dave	Read Replies (1) \| Respond to of 152472

Qualcomm Shedding Wireless Phone Unit, Analysts Upgrade From Stockhouse stockhouse.com 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. Toronto, ONT, December 22 /SHfn/ -- A flurry of optimism has swept across Wall Street that Qualcomm Inc. [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 [MOT] or Nokia [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. 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.

To: 100cfm who wrote (56129)	12/22/1999 7:45:00 PM
From: William Hunt	Read Replies (1) \| Respond to of 152472

100cfm ---*4 --DR"J" is really pushing per CC that in the year 2001 dual mode phones will be the norm with both GSM and CDMA capability BEST WISHES BILL

To: 100cfm who wrote (56129)	12/22/1999 8:00:00 PM
From: limtex	Read Replies (3) \| Respond to of 152472

100cfm - Dr Jacobs said someinteresting things on the CC or that part of it that I heard:- 1. "....if China gets going" 2. ".....both kinds of 3G.....are ours, the ????? type and the .....??type" ( or words to that effect)" 3. 'in 2001 wireless carriers will have to be able to respond to the huge demand for high data rates. We hope they will recognize that they will have to have CDMA systems to cope with that demand' ( I paraphrased) 4. KYO is in US, Canada, Mexico, N America, Korea, Japan and Brazil and maunfacturing in China. They have a more global ability in handsets than Q. 5. 'We would like to get into the business of suplying our chips to NOK, which is a fine company, but so far we haven't achieved that' No doubt Dr J knows what he is doing. The CC didn't give you the impression that fundamental earthshattering moves were afoot here. Also there were alternatives up until quite recently by the sound of it. There may be some really fancy strategy here but it didn't sound like it to me and we might be barking up the wrong tree by looking for one. It may be that the whole thing is much more basic i.e. they just wanted a competant good innivative world class handset producer and several of the suitors might have done as well except for the odd advantage or disadvantage. What the big strategy is all about is gettting CDMA into those markets that are friendly to it now and gaining market share in thise markets and leaving Europe to chase its tail with regulatory and industrial trade barriers and delay the real 3G deployment and fall behind those terrotories that welcome it now and aren't protectionist. Those that welcome it will gain the advantage in productivity and services for their populations and Europe will lose if it continues to prtect at the instigation of a few companies who are earning big under that regime but who would lose some royalty were they to adopt the new technology. Best regards, L

To: 100cfm who wrote (56129)	12/22/1999 8:52:00 PM
From: GO*QCOM	Read Replies (2) \| Respond to of 152472

I agree selling to Kyocera will be the start of a dynamic powerhouse.The arrangement is synergistic in its direction as QUALCOMM has the CDMA power and Kyocera is a large global player that needs badly to get very big, very fast in mobile phone manufacturing.This should put Nokia and Motorola on the defensive as they won't have the CDMA expertise that QUALCOMM brings to Kyocera.QUALCOMM will concentrate in creating very advanced CDMA chips and software. Nokia and Motorola will not be able to keep up and the capitulation to using QUALCOMM chips will occur.It is assured in this scenario and so QUALCOMM gets three companies as an ASIC,software customers in the end.QUALCOMM knows very well that as these ASICS keep advancing in capability going beyond voice driving HDR they will command the ASIC ,software CDMA market that goes well beyond the royalty model.This is a true Gorilla stradegy that will pay off bigger then the sale going to Nokia.