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

To: Keith Feral who wrote (67340)	2/17/2000 11:38:00 PM
From: Ruffian	Read Replies (2) \| Respond to of 152472

Snyder is @ it again. LoL!> Sawtek falls on insider selling rumors NEW YORK, Feb 17 (Reuters) - Shares of Sawtek Inc. (NasdaqNM:SAWS - news) dropped more than 25 percent on Thursday on reports that Qualcomm Inc. (NasdaqNM:QCOM - news) was introducing a product similar to one the wireless communications parts maker produces. Sawtek's stock fell 20-13/16 to 61-3/16 as one of the most actively traded issues on the Nasdaq stock market. More than 9.7 million shares traded hands, nearly 10 times as much as its average daily volume of 1.0 million. Chase H&Q analyst Ed Snyder said the product that Qualcomm announced, which converts radio signals into a form that can be used by wireless devices in one step, is old technology that other companies produce as well. ''Its compelling but it does not overwhelm me,'' Snyder said in a telephone interview. Its just one other person adding to this heap." Snyder, who said the Sawtek sell-off was ''overdone'' added that the product does not perform as well as products that use two-steps to convert the signal. Sawtek Chief Executive Gary Monetti said he was only aware of a Qualcomm chipset that works with Sawtek technology. Representatives at Qualcomm were not immediately available to comment. Reports also surfaced that Sawtek executives were selling off large amounts of shares of their stock. But Monetti said only shares the company was selling had been previously announced in a four million share offering, which included shares offered by the Sawtek Employee Stock Ownership and 401(k) plan, which was completed in late January.

To: Keith Feral who wrote (67340)	2/18/2000 1:30:00 AM
From: waverider	Respond to of 152472

woof!

To: Keith Feral who wrote (67340)	2/20/2000 12:36:00 AM
From: Ruffian	Read Replies (1) \| Respond to of 152472

QUALCOMM Incorporated QCOM - NASDAQ $130 Prudential Volpe Technology Group February 18, 2000 EPS 1999A 2000E 2001E Investment Opinion STRONG BUY Q1 $0.08 $0.26A $0.35 Risk Level Price Target High $183 Q2 $0.10 $0.25 $0.35 52-Week Price Range $200-$7 7/8 Q3 $0.19 $0.28 $0.47 Shares Out. (million) 142.2 Q4 $0.23 $0.31 $0.45 Market Cap. (million) $18,489.9 Year (Sep) $0.60 $1.11 $1.63 3-Yr. Est. EPS Growth (EEG) 35% P/E N/M N/M 79.8x First Call Prior Est. $0.60 $1.02 $1.35 Revs. (M) $3,937 $4,065 $5,041 ________________________________________________________________________________ QCOM:Optimistic Analyst Meeting;Raising Rating To A Strong Buy -QUALCOMM held an upbeat analyst day highlighting the company's opportunities -We are raising our rating to a STRONG BUY from an Accumulate -We are raising our 2000 EPS to $1.11 from $1.02 and 2001 EPS to $1.63 from $1.35 -There are a number of near term catalysts which could help push the stock higher -In our view, we've entered a new stage in wireless that emphasizes systems knowledge over connectivity -QCOM is the creator and owner of rights to CDMA, the most advanced digital wireless technology -The opportunity in China could be large and completes CDMA's encirclement of the Pacific Rim We are raising our rating to a STRONG BUY and increasing EPS after QUALCOMM's upbeat analyst meeting. At the QUALCOMM's analyst meeting yesterday, the company highlighted the breadth and size of the opportunity for QUALCOMM and CDMA worldwide. Chinese contract announcements, ASICs growth, the possibility of a CDMA 450 MHZ network in Europe and wireless data applications were just a sampling of the near term catalysts that could drive the stock. We have entered a new stage in wireless data were new applications and the systems integration they require should become more important than just pure connectivity. We are raising our numbers based on the opportunity in China and the increased financial visibility after the sale of the handset business sale is complete. As a result of these factors, we are raising our rating on QCOM to a STRONG BUY. We are raising our numbers to reflect the sale of the handset business and the opportunity in China. The sale of the handset business should place gross margins above 60% for the long term and keep operating margins in the low to mid 40% range. These margins are a result of the company's domination of the CDMA chipset market as well as royalties (which go directly to the bottom line) making up a larger percentage of revenues. Additionally we have increased our subscriber numbers in our model to reflect the opportunity in China, though we are still on the conservative side adding only 1.5 million Chinese CDMA subscribers to F2000 and 7 million subscribers to fiscal 2001 numbers. There are a number of near term catalysts that could help push the stock higher. The meeting was refreshing after the company's ho-hum December quarter conference call and should bring some positive attention back to the story. We believe there are a number of events that could help the stock over the next several months. The first of these would be the announcement of Chinese licensee contracts which should help to increase visibility in that country. Another near-term catalyst should be progress on the reallocation of the 450 MHz spectrum in Europe from an analog network to a CDMA network. Additionally, we believe ASIC announcements in the transition to 1X and HDR combined with QCOM potentially grabbing more of the silicon in a handset would drive top-line as well as secure future revenue streams. We've entered a new stage in wireless data that emphasizes systems knowledge over pure connectivity. Pure bandwidth, while still important and a competitive advantage for CDMA and QCOM, is no longer the only value the company brings to the table. Applications could include location-based services, music, BlueTooth, voice response and all the possible combinations of these features that require systems integration between the software and the components. wireless is maturing and a platform must be in place to enable OEM's and software designers' speed to market. The opportunity in China could be large and completes CDMA's encirclement of the Pacific Rim. While the initial ramp in China may be slower than the immediate 10 million new subscribers projected by China Unicom, the market still presents outstanding opportunity. The wireless subscriber penetration in China (approximately 3%) is very low compared to other markets such as North America (approximately 30%) and China has four times the population. We believe that the development that we are seeing in the Chinese market would more than double the addressable CDMA market compared to its current levels. China would complete CDMA's predominance in the pacific as it has a strong or growing presence in Japan, Korea, Australia, China, North America, and to some extent South America. QCOM is the creator and owner of the rights to CDMA. CDMA is the fastest growing wireless digital standard in the world, competing with GSM technology for global network deployments. CDMA is considered the best digital wireless technology in terms of capacity, sound quality, and data throughput with a projected 5-year CAGR of 74%. Fast product cycles in CDMA only help to strengthen QCOM's ownership of the handset as well as challenge slower evolving GSM technologies.