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

To: Uncle Frank who wrote (99570)	5/20/2001 12:55:41 PM
From: pcstel	Read Replies (2) \| Respond to of 152472

UF: "Spinco is spun off this year, the criteria would be the sum of Spinco and Qcom's price hitting 100." What kind of P/E would the market assign a pure Semi-Conductor play like SpinCo? At current Sales and R&D expenditure's.. Would SpinCo even make a P? Don't forget.. Most of ClassicQ's (The IPR company) revenues go into Engineering R&D expenditure's at SpinCo! Would those investment R&D dollars from ClassicQ continue to flow into SpinCo? Which specific IPR is Qualcomm going to provide to SpinCo in order to use it as "IPR Trading Cards?" They talk about "Snaptracs GPSOne stuff".. But, that is not WCDMA or CDMA2000 specific! Is Qualcomm going to remove current licensed IPR from it's licensee's.. and then tell them.. Oh! Sorry.. You don't have a license for that implementation (IPR) anymore.. We gave it to this company called Spinco.. So now you have to go to them and negociate a license to use the IPR that you already paid a license fee to us (ClassicQ) to use? Sorry!!! If so.. How long before the Licensee's tire of this game!! Look, we know you already paid to use this technology.. But, watch this.. ( Nothing up my sleeves!!! Presto!!!! It's gone!! Oh!!! Look!! It over there now!! At SpinCo!!) Go talk to them about a license... But, you better bring you valid IPR for WCMDA, because no one get's what they already paid for once, For Free!! PCSTEL

To: Uncle Frank who wrote (99570)	5/20/2001 7:48:16 PM
From: marginmike	Read Replies (2) \| Respond to of 152472

ill take that bet, $100 we dont see a hundred by years end.

To: Uncle Frank who wrote (99570)	5/20/2001 11:36:49 PM
From: JGoren	Read Replies (1) \| Respond to of 152472

I think what kind of price qcom will reach centers on what will happen when spinco trades. When spinco is broken out in the financial statements, it may surprise some how profitable it is. On the other hand, pctel has a good point that an awful lot of R&D is going to have to go into spinco. Qcom could easily reach 100 imho by the end of the year sometime) if Nasdaq heats up, but I don't think it will stay there. The market is looking to see earnings and there is no expectation that the earnings will shoot up until 2002. Right now we are running at a 50 PE on anticipated Y2002 earnings of 1.34. Running forward on 30% earnings increases, it would be 2003 (anticipating Y2004) before we could justify over 100 and be comfortable with it sticking. I am using a PE of 50, although 2002 could justify 102 at 60PE.