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

To: techguerrilla who wrote (63974)	1/25/2000 3:04:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 152472

Analyst on Qualcomm's report and the bigger picture By Colleen Bazdarich, CBS MarketWatch Last Update: 2:19 PM ET Jan 25, 2000 Personal Finance News Join the discussion SAN FRANCISCO (CBSMW) -- The wireless sector has been growing "like gangbusters" lately, and 2000 shouldn't see any let-up. "You have to attack the cost structure of offering global telephony, and that is what we are looking for in terms of our investments -- things that allow you to cut the cost structure." Pete Peterson, Prudential Volpe Technology Analysts like Pete Peterson of Prudential Volpe Technology in San Francisco are looking for companies that will pioneer the world into high wireless usage -- with aims of a 100 percent subscriber rate. He talked with Colleen Bazdarich of CBS MarketWatch about which companies are best suited to commandeer the wireless world and, in the shorter term, what investors should expect from Qualcomm's report on Tuesday. CBSMW: So Qualcomm is going to be reporting on Tuesday. What should we be looking out for from them? I noticed their stock went down quite significantly Monday. Peterson: I think there you have people expecting a moderate quarter. There have been some negative indicators coming out of Korea -- that the domestic market has slowed down to some degree. I think the positive side that we will be looking for coming out of this call is the advancement of CDMA in Japan -- there is good reason to believe that there should be some upside there. IDO and DDI -- the two carriers in Japan that are using the Qualcomm (QCOM: news, msgs) technology -- have merged and so now you have a national footprint there. You also have a very aggressive consumer base in Japan which has been gobbling up higher speed data services. We can also look for improvements in HDR (high data rate technology), and there will probably be some hints as to the adoption of HDR. We are looking for any mention of that in terms of the trials they might be doing going forward. There is one more thing investors should be looking for -- Qualcomm has announced the sale of their handset division. We are looking forward to the presentation of their financial performance numbers that takes the handset division out. That is not the way they are going to report -- but we do think that in the report they're going to show us what it would have been if they didn't have the handset division. I think we are expecting to see a significant increase in profitability for the firm. CBSMW: So essentially, you believe that they are selling off an earnings vacuum? Peterson: There you go. I think it is important for the stock and for investors looking at the report -- I think people will be surprised by those positive numbers.

To: techguerrilla who wrote (63974)	1/25/2000 3:08:00 PM
From: Ruffian	Read Replies (2) \| Respond to of 152472

Part 2> CBSMW: So even though investors were jittery on Monday, you think the reports are going to be fairly positive? Peterson: The stock has gone like gangbusters. We were looking at a little bit of a sell-off Monday -- we are not talking about a bad report. It's just that investors are not looking to be tremendously surprised on the upside. CBSMW: Now what about the whole sector. How has the whole wireless sector been doing lately? Peterson: Lately the wireless has been on fire. In 2000, things have really taken off. Some of the players have been showing surprising advances. Looking outside Qualcomm, Powerwave (PWV: news, msgs) is up well over 25 percent this year. Adaptive (ADAP: news, msgs) is up over 25 percent this year. They do broadband wireless access. RF Micro (RFMD: news, msgs), which does the power amplifiers for handsets, is another stock that is up over 25 percent already this year. Those are three to throw out as examples of what was happening. What we are really finding is that there is a lot of traction now on the idea of wireless subscriber growth and minutes-of-use growth and now wireless Internet. Everyone is getting into the game. It is not just the big guys playing -- it is not just the Ericssons (ERICY: news, msgs) and the Motorolas (MOT: news, msgs) and the Nokias (NOK: news, msgs).