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

To: carranza2 who wrote (106265)	10/5/2001 5:39:18 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 152472

You've got a good point there, about the difference between GAAP and pro forma, for techs in general and QCOM in particular. Throwing money at Concepts, in an attempt to grow the geographical area where CDMA is used, or to find a killer app for 3G (other than voice), is something QCOM has done regularly. Sometimes it works, sometimes it doesn't. But the point is that, during the Bubble, it has been an integral part of Qualcomm's business model. So perhaps investors shouldn't ignore it. IMO, Qualcomm will have to do much less of this in the future. Or, rather, they will shift this risk onto their developing ValueChain. In the beginning, Qualcomm had to fund it, to make any progress in anything concerning CDMA. They were the only ones doing it. With every passing year, this is less and less necessary. IMO, the longterm trend is for Qualcomm to narrow their focus, continue to shed non-core businesses (like making chips), and take fewer risks. I would be very dissapointed, if they do another Globalstar. I think they've learned that expensive lesson. I expect a big discrepancy between GAAP and pro forma, for QCOM, only in this Post-Bubble phase, which I expect to end sometime in 2002.