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

To: Caxton Rhodes who wrote (10104)	5/15/2000 1:11:00 AM
From: Ruffian	Read Replies (1) \| Respond to of 13582

A new research report has just been published by Banc of America Securities LLC: QUALCOMM INCORPORATED (QCOM $97.31) - Positive Comments from CFO; Globalstar risk quantified; Buy. By Mark A. McKechnie Qualcomm CFO Tony Thornley delivered an up-beat presentation at our Growth Stock Conference in London this morning. The meeting confirmed our view that March was the bottom for Qualcomm's chipset business: 1. Company on-track to meet our estimated 14.5 million chipsets for June, up from 11.2 million in March. We also expect strong sequential growth in September ahead of the seasonally strong December. Recall that March was weak because of channel inventory and product transitions. 2. Management expects "flattish" chipset ASPs in the second half of the calendar year because of added features. This compares with down 15-20% historic declines, and our estimate of down 10-15%. The stabilization is because of added features including Bluetooth, MP3, and GPS location functionality from the SnapTrak acquisition. 3. Look for Japan announcement on "3G" on May 12th. Company is optimistic that wireless carriers DDI and IDO will reverse its "3G" decision from W-CDMA to cdma2000 in its spectrum application. This would be positive for Qualcomm because they are better positioned in cdma2000 than W-CDMA (see our 2001 piece). 4. Globalstar risk "bounded". Qualcomm estimates about 10% of revenue and $0.10 EPS exposure for FY01 for both contract services and handset sales to the Globalstar satellite venture. The company also has about $650 million balance sheet exposure to the venture. Globalstar is clearly not ramping as fast as expected, but Qualcomm remains cautiously optimistic. The outcome of Globalstar is uncertain, and not for us to call, this is solely to make the market aware of the exposure. We remain comfortable with our estimates for FY00 and FY01, even in a disaster scenario, because of upside potential from Qualcomm's core chipset and royalty business. Maintain Buy and $165 price target. We are bullish on fundamentals for CDMA and Qualcomms dominant position over the standard. We believe that inventory issues at Korean customers are resolved and March was the bottom. We would look for weakness on fears surrounding Globalstar as a buying opportunity. To access the report simply click on the attachment below: <<QCOM 05-11-00.pdf>> ____________________________________________________________

To: Caxton Rhodes who wrote (10104)	5/15/2000 1:32:00 AM
From: The Verve	Read Replies (1) \| Respond to of 13582

Caxton, I agree with you about the 8500. My neighbor across the street bought one with Verizon and let me tell you...I'm BLOWN away at how cool this phone is. I've believed for a long time that handsets are a major factor that drives carrier subscriber rates. When I was a first time cell phone buyer, I shopped phone first, then picked up service with the carrier that was available for that phone. That 8500 is gonna do quite well for the CDMA carriers, thank you. I can't imagine how NOK's marketshare can be maintained, much less grow when they're competing against a technological marvel like that Samsung phone. (BTW, I was in Radio Shack 2 days ago, and they told me that the 8500 was one of the top two best sellers) NOK CAN'T be resting easy these days...or are they so fat and arrogant that they don't care? Verve