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

To: Didi who wrote (67575)	2/20/2000 12:30:00 PM
From: Ruffian	Read Replies (2) \| Respond to of 152472

QCOM, blue chip of the New Economy By Don Luskin (rating 3.9) on 10:24 02.18.00 The news on Qualcomm today is that yesterday's analyst meeting was a hit, with heavy emphasis on the prospects for their China deal. On the strength of this positive shift in expectations, QCOM has now conclusively broken out of its pattern of decline, and has validated its long term uptrend. Its status as a blue chip of the New Economy appears totally secure. Qualcomm is an example of "when bad analysts happen to good stocks." Striving in obscurity for years with only the lonely voice of George Gilder to speak up for its CDMA technology, QCOM hit the big-time last December. A showboating analyst at PaineWebber posted a flamboyant price target of 1000 (now 250, given the 4:1 split) in the week between the Christmas and New Years holidays. It was like throwing gasoline on a campfire. Liquidity was low in that holiday week to begin with, and Qualcomm was already the object of a lot of year-end window dressing. But after the 1000 price target, every portfolio manager in America just had to show QCOM on the books at year end-- at any price. They were egged on by the talking heads at CNBC who --literally!-- chanted QUAAAAAAALCOMMMMMMM! QUAAAAAAAAALCOMMMMMMM! over and over during Squawk Box. As soon as the new year dawned, everyone felt rather embarrassed by the whole tawdry affair, and QCOM's stock price took the brunt of it. Collapsing from a year-end high of 200 to 105 within a single month, the excesses got wrung out hard. Now laboring under the epithet "former high flyer," QCOM has finally built the foundation for a real recovery, and a resumption of its well-deserved long-term uptrend. Let's not forget what this company is. This is the Microsoft of the wireless age. Microsoft rose to dominance by controlling the operating system of the PC, the critical information tool of 1990s. Qualcomm controls the operating system for wireless voice and data transmission, the critical information tool of the 2000s. Indeed, Qualcomm is positioned to inherit Microsoft's mantle of leadership quite literally. As George Gilder says, the best-selling PC in the next decade will be a cell phone. And it wont' do Windows. In a decade Qualcomm may be one of the most valuable companies in the world, long after Microsoft is a mere curiosity in the legal textbooks. -=-=-=-=- Donald L. Luskin MetaMarkets.com Taken From Raging Bull Thread.