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

To: limtex who wrote (95399)	3/8/2001 9:55:42 AM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 152472

L, you noted, "This reminds me very much of SNDK a couple of years ago when we kept on seeing announcements of design-ins and new licensees but the stock languished." There are many similarities between QCOM and SNDK, but the main difference is that QCOM has a much stronger patent portfolio, raising even more questions as to why QCOM shares languish. The conspiracy theory, as you suggest, may be at work here, but in order to work, it requires people gullible enough to believe in it. There appear to be no shortages of gullible investors when it comes to believing opinions of analysts from major investment firms concerning a particular stock. I blame gullible investors as much as I criticize analysts and their self serving statements. There are two key issues that influence the outlook for QUALCOMM. First, as you have noted, is a political agenda of certain companies to prevent QUALCOMM from establishing a foothold in regions dominated by GSM. The key advantage of WCDMA over CDMA2000 as a 3G standard (until recently) was the incompatibility of WCDMA with CDMAOne--an intentional, political design. Now, however, the situation has changed as a result of new chips from QUALCOMM, which can handle either GSM or CDMA seamlessly. Second is the technology itself. It is doubtful that WCDMA will ever be as efficient as the various types of CDMA 1x... now available. To make sure there is plenty of incentive on the manufacturing side, QUALCOMM has been licensing companies left and right for 3G, and more important, for products such as wireless modems. The service providers who choose the preferred QUALCOMM designs will simply outperform others, who, for whatever reason, think they can get by with a 2.5G non-solution to the problem of high speed data access. That is, they will outperform the GSM holdouts as long as competition is available in a given region. The competition issue also arises in the context of rules governing the members of the World Trade Organization. The Europeans, who tend to have stronger viewpoints on antitrust than the U.S. (particularly in light of the policies of the new administration), will now have to think long and hard about whether an inferior standard (WCDMA) can be allowed to interfere with competition from a compatible, lower cost standard that is already available. The longer a gullible investment community is willing to defer to analyst self-serving opinions, the more opportunity other investors have to take advantage of bargains. Art Bechhoefer

To: limtex who wrote (95399)	3/8/2001 10:22:56 AM
From: waverider	Read Replies (3) \| Respond to of 152472

Limtex...Q3 in the US? SNDK all over again? Big Enemies doing us in? Come on... For God's sake, listen to the market. That is all that is important. Who the hell cares what is going on anywhere else. All the niffty press releases in the world are not going to change what is going on now. The fact of the matter is that we are going through a major PE contraction and those who don't understand and ignore it are going to continue to see their portfolios bleed. Hope you too make a million. Surfer boy out...