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

To: Ed Forrest who wrote (67968)	2/26/2000 4:59:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 152472

JDS Uniphase, Qualcomm Liked by MetaMarkets, Barron's Says By Andy Peters South San Francisco, California, Feb. 26 (Bloomberg) -- JDS Uniphase Corp. and Qualcomm Inc. are the Intel Corp. and Microsoft Corp. of ''this next phase of the New Economy,'' MetaMarkets Investments managers Donald Luskin, Davis Nadig and Maurice Werdegar told Barron's, because JDS Uniphase makes products that let more information travel through networks and Qualcomm controls the operating system for wireless. The South San Francisco, California-based firm posts its entire $28 million portfolio on its Internet site, www.openfund.com, along with every trade. The managers also like PE Corp.'s Celera Genomics Group, Globalstar Telecommunications Ltd., Terayon Communication Systems Inc., Wave Systems Corp., Electric Fuel Corp. and Harris & Harris Group Inc., Barron's said. San Jose, California-based JDS Uniphase this month completed its purchase of Optical Coating Laboratory Inc. for about $5.7 billion in stock. (Barron's 2/28 36) (For Barron's Web site, type BARR .)

To: Ed Forrest who wrote (67968)	2/26/2000 5:41:00 PM
From: Ruffian	Read Replies (3) \| Respond to of 152472

Trade Update by WSH 2/25/00 8:00 AM PST Buying QCOM here 138-140. There are a number of factors that favor a buy of QCOM at this point. First, the China deal being postponed presents a buying opportunity for QCOM. This deal postponement by China is a classic Chinese negotiation tactic. With all the investment in CDMA by local manufacturers, China has far too much to lose if this deal were to fall through. The second factor is CITA's wirless tradeshow next week in New Orleans. Expect the introduction of various new CDMA products at the tradeshow. The following is an article from Pete Peterson at Prudential released today: QCOM: Postponement Activity on China Should Only Be Temporary - Recent news stated that the deployment efforts of CDMA in China have been postponed - We do not believe that the postponement was based on CDMA or on renegotiations tactics, but rather on political issues - Our Washington analyst concurs with our expectation that the postponement should be short-term - We expect a new date for the bidding process to be set shortly - Our estimates remained unchanged -- our China estimates have been conservative - We believe that China will deploy CDMA based on its spectral efficiency and cost benefits - Our thesis on QCOM and CDMA remain intact - Reiterate our STRONG BUY rating A recent story in the Asian Wall Street Journal stated that the China government has postponed the CDMA deployment process in China. The article stated that bids by multinational companies such as that put in by Ericsson are not being accepted. Ericsson confirmed that they had received the update from the Chinese State Planning Department. We believe that the postponement was not based on any technological issues but more on political issues. The move maybe associated with China's entry into the World Trade Organization and China may be using CDMA as a bargaining tactic over its negotiations with the United States. Our Washington counterpart concurs with our expectation that the postponement would be short term. Ericsson has been notified that a new date for bidding process would be set shortly. We do not believe that this activity is part of China's tactics for renegotiations royalty rates with QUALCOMM. QUALCOMM had gone through months of negotiations with China during which the Chinese government was very involved and had given its approvals. Furthermore, one of the specific terms set by QUALCOMM in awarding China with a lower royalty rate was that China Unicom would need to deploy a network to support 10 million subscribers by the end of 2000. Any delay in this would affect the lower royalty rate offered. We also believe that China Unicom would not want this setback and would not want to be behind in 3G deployments as well. Ericsson has been notified that a new date for bidding process would be set shortly. We believe that this postponement should only be temporary. Our estimates remained unchanged-our China estimates have been conservative. Our model reflects the opportunity in China, though we are still on the conservative side adding only 1.5 million Chinese CDMA subscribers to fiscal 2000 and 7 million subscribers to fiscal 2001 numbers. We recognize the political risks associated with China but we do not see this activity affecting our current estimates. 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. Our thesis on QCOM and CDMA remain intact - Reiterate our STRONG BUY rating. We believe that China will deploy CDMA based on the technology's spectral efficiency and cost benefits. 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.