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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (3749)	10/16/2000 11:55:14 AM
From: Caxton Rhodes	Respond to of 197030

Qualcomm stock up 6 pct, boosted by China plans NEW YORK, Oct 16 (Reuters) - Shares in mobile phone technology company Qualcomm Inc. jumped about 6 percent on Monday, boosted by unexpected news that its technology will be used in China. San Diego-based Qualcomm gained $4-1/2 at $74-7/16, and was among the most active on Nasdaq. China Unicom, China's No. 2 mobile phone company, reversed course and said Monday it will build networks using Qualcomm's current code division multiple access (CDMA) technology. China Unicom had ruled out using the narrow-band CDMA standard in June. Almost all China's 65 million mobile phone subscribers use the rival GSM (global system for mobile communications) standard promoted by European firms. CDMA allows phone companies to cram more calls and information across limited airwaves than GSM. Unicom had come under pressure from domestic equipment makers that invested in the CDMA standard. Analysts said that although the size of the China Unicom network was unknown, it could mean that millions more cell phones will use the CDMA technology. "This is a pretty solid upside opportunity for Qualcomm over the long term," said Mark McKechnie, an analyst with Banc of America Securities. He said China Unicom's use of current CDMA technology could add 5 cents per share to Qualcomm's profits in the 2001 fiscal year and 10 to 15 cents in 2002. Analysts expect earnings of $1.29 a share in 2001, according to research firm First Call/Thomson Financial. Vadim Zlotnikov, an analyst with Sanford C. Bernstein, called the news "a positive." He said it could add 10 cents to earnings per share next year.