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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (26945)	9/20/2002 12:36:05 PM
From: Caxton Rhodes	Read Replies (1) \| Respond to of 196421

the 13 week lead time means that q's December quarter is already booked (except the next two weeks) Its no wonder they can preannounce chip volumes for next quarter so soon.

To: slacker711 who wrote (26945)	9/20/2002 3:52:44 PM
From: slacker711	Read Replies (2) \| Respond to of 196421

Bank of America comments....Q presents at their conference next week. I really like how they come up with an appropriate valuation for Qualcomm.....they seem to imply that EVERY company should trade at the same PE as the S&P500. investor.cnet.com QUALCOMM, Inc. (QCOM) - Market Performer Mark A. McKechnie Chipset Shipments Strong; Raise Estimates Price: $25.72 52 Wk. Range: $62-23 Mkt. Cap.: $20.8 BB Banc of America Securities LLC currently maintains a market in this security and otherwise purchases and sells securities of this company as principal. :QCOM. Banc of America Securities LLC and/or its affiliates has received compensation for investment banking services from this company, its subsidiaries or affiliates during the previous 12 months. :QCOM, MOT. Banc of America Securities LLC and/or its affiliates expects to receive, or intends to seek, compensation during the next three months for investment banking services from this company, its subsidiaries or affiliates. :QCOM, MOT. A member, allied member or employee of Banc of America Securities LLC is a director or officer of MOT. * Yesterday after the close, Qualcomm raised its September chipset guidance from 18-19 mm units to 20 mm, up from 16 mm in June. The upside appears related to "2G" chipsets, as the 15 mm 1x chipsets expected to ship in September is in-line with previous guidance. Qualcomm also stated strong order patterns for December and thus expects December shipments "significantly higher" than the 20 mm expected for September. * We attribute Qualcomm's chipset unit strength to (1) handset builds ahead of the holiday season, (2) near-term strength in China, and (3) more importantly, market share gains by Qualcomm's chipset division in Motorola's (MOT; $10.12; MP) new cdma1x phone products. * Raising estimates. For September, we have raised our EPS estimate from $0.26 to $0.27 and sales from $817 mm to $855 mm on 20 mm chipsets versus our previous 18.5 mm unit forecast. For FY03, we have raised our EPS estimate from $1.11 to $1.18 and sales from $3.4 bb to $3.7 bb. As a result, our CY03 estimate goes from $1.15 to $1.20. * Maintain Market Performer Rating. We remain neutral on the stock given valuation and a relatively large exposure to the U.S. carrier market. However, we would expect to see a trading rally, as Street expectations were factoring a "miss" for December based on inventory/sell-through issues. Stock trades at 21x our new CY03 EPS estimate of $1.20, a premium to the S&P 500, which trades at 15x (BAS earnings estimate).