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

To: slacker711 who wrote (105915)	10/4/2001 10:22:12 AM
From: Cooters	Read Replies (1) \| Respond to of 152472

From SSB, OPINION RadioShack(Not Rated) released very strong September comp sales this morning. For the wireless category, the company reported around 30% growth in units and nearly 20% growth in revenues in September. This compares with 20% growth in units and revenues in August, and mid single digit unit growth with flat revenue growth reported for July. Management highlighted that both Sprint PCS and Verizon performed well during the month. We believe these results are particularly impressive given that sales were likely disrupted for several days because of the events of September 11. We reiterate our Buy rating on Sprint PCS as our top pick in the group with a target price of $36. RadioShack wireless sales for September were the strongest they have been all year and imply upside potential to our subscriber forecast for Sprint as the channel represents about 25% of activations for Sprint PCS. Our 3Q/01 net add estimate of 845k for Sprint PCS assumes only 8.8% activation growth on 2.45% churn. We believe Sprint's ASL program has been stimulative to gross activations, based on our channel checks. Sales results from RadioShack support our view that growth in the wireless industry remained resilient in the third quarter. We forecast activations for the industry will grow in the low double digits in the third quarter. As we observed last quarter, there will be month to month variability in sales results from a number of factors including seasonality, promotions, and indirect retail marketshare. RSH attributed the gap between revenue and unit growth to greater subsidization of the handsets to clear the inventory of older IS-95 phones for newer 1XRTT phones.