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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Apollo who wrote (34643)	11/13/2000 2:35:34 PM
From: straight life	Respond to of 54805

"Market bottoms....... Is everybody having as much fun this AM, as I am? Everything's red, just about everywhere on the High Tech front." Then again, there's Q: (ps- if you were calling a bottom, great call!) QCOM: SPRINT PCS DECIDES TO USE SNAPTRACK--REITERATE STRONG BUY QUALCOMM, Inc. (QCOM-OTC) PRICE: $73 15/16 52-WEEK RANGE: $200-$22 KEY POINTS -- Last week Sprint PCS announced that they will be using Snaptrack’s handset-based solution to fulfill their FCC E-911 mandate. -- Snaptrack’s GPS-based location technology is currently being incorporated into QUALCOMM’s MSM3300 chip. -- It’s not apparent to us that handset makers not using QUALCOMM’s chipset have access to Snaptrack’s GPS-based technology. -- Sprint’s decision could essentially lock any handset manufacturers into buying their chipsets from QUALCOMM -- We’re not sure if this announcement will change earnings guidance by the company. -- We reiterate our Strong Buy rating. KEY ISSUES Last week QUALCOMM introduced the MSM5200 and the CSM 5200, single-chip solutions for W-CDMA handsets and infrastructure, respectively. QUALCOMM also announced that the European Patent Office (EPO) had upheld the validity of three QUALCOMM patents that had been challenged by Nokia. Also last week, Sprint PCS announced that it would meet the FCC’s E911 Phase II mandate with QUALCOMM’s SnapTrack handset-based solution. The FCC’s Phase II mandate requires that a carrier implementing a handset-based position determination solution must, by October 1, 2001, be able to determine two-thirds of position-enabled handset to within 50 meters. We are not aware of any licenses that QUALCOMM has issued for access to its location technology. If so, any manufacturer supplying handsets to Sprint might be required to purchase their chips from QUALCOMM – the MSM3300 in order to incorporate the location solution. Currently, we believe only Motorola and Nokia are manufacturing handsets not using QUALCOMM’s chips. It’s possible that Sprint’s decision means that Motorola and Nokia will need to buy their chips from QUALCOMM as well if they want to sell phones to Sprint. We reiterate our Strong Buy on the shares. Sprint’s decision could mean that we have been too conservative in forecasting QUALCOMM’s chipset marketshare. Additional information is available upon request. First Union Securities, Inc., maintains a net trading market in QCOM. An author of this note owns stock in QCOM. QUALCOMM is on the Analyst Action List. This is for your information only and is not an offer to sell, or a solicitation of an offer to buy, the securities or instruments mentioned. Interested parties are advised to contact the entity they deal with, or the entity that has distributed this report to them. The information has been obtained or derived from sources believed by us to be reliable, but we do not represent that it is accurate or complete. Any opinions or estimates contained in this information constitute our judgement as of this date and are subject to change without notice. First Union Securities, Inc. (“FUSI”), or its affiliates may provide advice or may from time to time acquire, hold or sell a position in the securities mentioned herein. FUSI is a subsidiary of First Union Corporation and is a member of the NYSE, NASD and SIPC. Copyright © 2000 First Union Securities, Inc. FUSI is a separate and distinct entity from its affiliated banks and thrifts.SECURITIES: NOT FDIC-INSURED • NOT BANK-GUARANTEED • MAY LOSE VALUE cnetinvestor.com.