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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: RoseCampion who wrote (4698)	12/30/1999 7:36:00 PM
From: Jon Koplik	Read Replies (1) \| Respond to of 13582

To all - NYT piece on Qualcomm. (Nothing juicy, but a pleasant surprise to see that every last detail is factually correct). December 30, 1999 Qualcomm Closes Lower After Early Gains Filed at 6:06 p.m. ET By Reuters LOS ANGELES (Reuters) - Qualcomm Inc. (QCOM.O) on Thursday saw its shares surge 12 percent before retreating into negative territory, but the stocks of related companies soared following rosy forecasts for Qualcomm's mobile telephone technology. While investors in the San Diego-based company were catching their breath after a 30 percent rise on Wednesday, other stocks with ties to Qualcomm's wireless technology posted sharp gains. On Wednesday, Qualcomm rocketed 156 points after an analyst with brokerage firm Paine Webber issued a ``buy' rating on the stock and forecast it could rise to $1,000 a share within a year. Analyst Walter Piecyk forecast that by 2010, 85 percent of mobile phones sold worldwide would use CDMA, compared to 18 percent today. He said a 45 percent compound annual growth rate for CDMA would generate up to $20 billion royalty stream for Qualcomm. Shares of Qiao Xing Universal Telephone Inc. (XING.O), a Chinese company that is applying to manufacture mobile phones based on Qualcomm's code division multiple access, or CDMA, technology in China, rose $8-5/8 to $30-5/8 a share on Nasdaq. Qualcomm stock ended down $12 at 647 after earlier rising as high as $740-1/8 on Nasdaq. CDMA is a high-quality mobile telephone standard that is at the foundation of the next generation of wireless networks being installed around the world. Qualcomm holds key patents on the technology. Qiao Xing, based in Huizhou, China, saw shares in its Nasdaq-listed holding company quintuple on Tuesday after it said the government of China's Guangdong province was reviewing its application to make CDMA phones. But the shares lost much of that gain on Wednesday when the Ministry of Information Technology in Beijing, which has the final say over the issue, said Qiao Xing was still a long way from getting the green light. Japan's Kyocera Corp. (6971.OS) saw its American depository receipts (KYO.N) rise more than $20 to 280-7/8 on Thursday before trimming the gain to about $2 by the close. Kyocera, a major maker of mobile telephones for the Asian market, last week agreed to buy Qualcomm's CDMA handset business and buy the majority of its chips and software from Qualcomm for five years. It said the deal would make it a major player in CDMA in Asia and give it a foothold in the North American mobile phone market. The purchase sparked a big run-up in Kyocera's stock, which has risen from below 175 on Dec. 23. Qualcomm has been in the investor spotlight for the past few weeks as analyst after analyst has issued bullish reports and ever-higher price targets for the stock, which has risen 2,600 percent this year. Thursday's trade was extremely volatile, with the stock falling from its all-time high of 740-1/8 to as low as 638-15/16. Volume was 16.1 million shares, more than double the daily average. Qualcomm is set to make a four-for-one split of its stock after the close of trade on Thursday. The move was announced in November, when Qualcomm was trading at around $250, and approved by shareholders on Dec. 20. Copyright 1999 The New York Times Company