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

To: Ruffian who wrote (56557)	12/23/1999 9:40:00 PM
From: Jenne	Respond to of 152472

U.S. mobile phone technology developer Qualcomm Corp <QCOM.O> said it had sold its unprofitable handset unit to Kyocera, the world's largest maker of integrated circuit ceramic packages. Financial terms of the deal were not disclosed, but Japanese business daily Nihon Keizai Shimbun said the deal would be worth more than one billion dollars.

To: Ruffian who wrote (56557)	12/23/1999 10:03:00 PM
From: Voltaire	Respond to of 152472

Ruff, I can only tell you what I did. I bought the Jan. 550's. If we do not get to $600 next week we will scare hell out of it! 100 pts will make me a lot of money. This is what I mean about these manipulated dips making one more money than anything. DO YOU THINK THE HOUSES DID NOT BUY CALLS TODAY? RIGHT! V

To: Ruffian who wrote (56557)	12/23/1999 10:18:00 PM
From: JohnG	Respond to of 152472

Ruffian. Merry Christmas to you. Thanks again for the credibility you've provided for Q for the last many months. JohnG

To: Ruffian who wrote (56557)	12/23/1999 10:26:00 PM
From: Jon Koplik	Respond to of 152472

Someone asked me today about some (out of the money April) QCOM calls selling at about $55. I responded : Why not buy 200 shares of Globalstar instead of each 1 Qualcomm option, and own it (the GSTRF shares) forever, instead of sweating out QCOM for an extremely limited time period ? Plus, if the time horizon is really "the rest of your life," it is not crazy to envision GSTRF up 10 fold if things go well. Just a thought from someone who really cannot stand watching a long call option expire worthless. Jon.

To: Ruffian who wrote (56557)	12/23/1999 11:42:00 PM
From: LBstocks	Respond to of 152472

Why Qualcomm's Big News Fell So Flat By Alec Appelbaum and Lawrence Carrel QUALCOMM (QCOM) stock moved more than 3% lower and was one of the market's top volume losers following news it planned to sell its phone-making business to Japan's Kyocera (KYO). Analysts have been clamoring for a deal for months, but had hoped the selling partner would be Nokia (NOK) or Motorola (MOT) not a relatively obscure Japanese company. What's the difference? Nokia and Motorola are the major players in the phone business and would have made much bigger customers for Qualcomm's CDMA chips. Of course, everything's relative with this stock. QCOM shares began the year below $30 a share and soared above $500 earlier this week ? a gain of more than 1,600%. After the first hour of trading this morning, they'd sagged back to about $466, leaving investors with a paltry little 1,450% gain for the year. Essentially, the logic of selling the handset business was already built into the stock long before it happened. Qualcomm told Wall Street months ago that it would unload the low-margin unit in order to concentrate on the high-margin part of its business. And regardless of the buyer, Wall Street is still extremely bullish on the stock. Deutsche Banc Alex. Brown estimates that overall gross margins will improve to almost 60% from the current level of about 40%. Qualcomm helped pioneer a digital-communications technology known as code division multiple access, or CDMA. The San Diego company has long sold its own digital phones and other equipment, but recently shifted strategies to narrow its focus to licensing its CDMA software and building sets of CDMA chips. Now that Kyocera has bought the handset business, it will remain a customer for Qualcomm chips. But a bigger buyer would have potentially provided a bigger customer. Earlier this week, some shareholders saw the pitfalls ahead. "If they sell to Nokia or Motorola, their stock is up," predicted Jeff Wrona, manager of the PBHG Technology & Communications Fund (PBTCX), in an interview with SmartMoney.com on Tuesday. "It's all a matter of who they sell to and if they get a supply agreement on the chip side." After the fact, Deutsche Banc Alex. Brown analyst Brian Modoff, who has revised his price targets on Qualcomm shares several times this fall, rushed to defend the deal in a note to clients. He pointed out that Kyocera is making a five-year purchase commitment for Qualcomm technology and forking over "several hundred million dollars of cash." Credit Suisse First Boston concurred, giving Qualcomm stock a Buy rating this morning and noting Kyocera will open the door for Qualcomm's further expansion in Asia. Other houses chimed in with lukewarm support, pointing out that Qualcomm is making good on its promise to leave the low-margin handset business. But after the stock climbed 900% on the promise of such a move, such reassurances sounded like Republicans forced to defend George Bush's selection of Dan Quayle. The choice meets all the points on a checklist, but without much star power. Modoff's team urged investors to treat significant drops in Qualcomm shares as a buying opportunity, citing their oft-told conviction that CDMA will become the dominant medium for wireless data and that Qualcomm will now become a more profitable shop. However, after inflating this stock to a trailing P/E over 400, investors may be finicky about finding new reasons to loft it any higher. smartmoney.com

To: Ruffian who wrote (56557)	12/24/1999 12:05:00 AM
From: LBstocks	Respond to of 152472

LGIC to set up CDMA-producing base in China LG Information and Communications (LGIC) has formed a joint venture in China to manufacture and market a CDMA (code division multiple access) type WLL (wireless local loop) system there, the company announced yesterday. Guangzhou Post & Telecom Equipment Co. (GPTE) and Guangdong Telecommunication Academy of Science and Technology (GTAST) are LGIC's local partners in the newly formed Guangzhou LG-TOPS Communication Technologies Co. LGIC and GPTE each holds a 40 percent interest, while GTAST holds a 20 percent interest in the new joint venture in which about $160 billion will be invested. When the production facility is completed by the first half of next year, about one million circuits will be produced annually, according to LGIC. The new company will initially concentrate on forming the telecom infrastructure, manufacturing CDMA WLL systems under the LG-TOPS brand name. The company plans to take a majority of China's CDMA WLL market share in three years by eventually manufacturing CDMA handsets as well. LGIC's position in the Chinese telecom market has been greatly boosted through the latest venture, according to the company, as Guangdong Province accounts for over 20 percent of China's mobile telecom market. LGIC has been targeting China as a major market lately. In addition to the latest venture, CDMA WLL export deals with Meizhou City, Heyuan City and Quanzhou City are also under negotiations, according to the company. (KHR) Updated: 12/24/1999