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

To: propitious7 who wrote (27344)	10/1/2002 12:59:51 PM
From: bdog	Respond to of 197244

William Blair & Company Initiates Coverage of Qualcomm Incorporated With Outperform Rating 10:02 EDT Tuesday, October 01, 2002 CHICAGO, Oct. 1 /PRNewswire/ -- William Blair & Company today announced that it initiated research coverage of Qualcomm Incorporated (Nasdaq: QCOM) ($27.62), the leading developer of CDMA-based integrated circuits and system software for wireless voice and data communications and global positioning systems, with an Outperform rating and company profile of Core Growth. Analyst Amit Dhawan estimated that the company, which has more than 2,300 issued and pending CDMA patents, would earn $0.94 per share in 2002 and $1.08 per share in 2003. "In our view, Qualcomm is a premier name in the wireless industry and warrants a premium multiple given its high market share, strong operating fundamentals, superior free cash flow generating capabilities, and growth prospects," Dhawan said. "For long-term investors, we believe that at less than 30 times our calendar 2003 EPS estimate, or a PEG ratio of 1.5 times (which equals the six-year historical average), Qualcomm's current stock price provides a reasonable entry point and should offer long-term outperformance based on the company's growth potential." Current Rating Distribution (as of 8/30/02) Coverage Inv. Banking Universe Count Percent Relationships* Count Percent Outperform 113 45% Outperform 17 59% Market Perform 92 37% Market Perform 9 31% Underperform 44 18% Underperform 3 10% Stock Rating: William Blair & Company, L.L.C. uses a three-point system to rate stocks. Individual ratings reflect the expected performance of the stock relative to the broader market over the next 12 months. The assessment of expected performance is a function of near-term company fundamentals, industry outlook, confidence in earnings estimates, valuation, and other factors. Outperform (O) - stock expected to outperform the broader market over the next 12 months; Market Perform (M) - stock expected to perform approximately in line with the broader market over the next 12 months; Underperform (U) - stock expected to underperform the broader market over the next 12 months; Not Rated (NR) - the stock is currently not rated. Prior to September 3, 2002, William Blair & Company, L.L.C. used a four- point numerical system to rate stocks. Investment ratings reflect the expected performance of the stock relative to the market over the next 12 to 18 months: 1 - Strong Buy (Significant Outperformance); 2 - Long-term Buy (Outperformance); 3 - Hold (Market Average Performance); 4 - Sell (Underperformance). Company Profile: The William Blair research philosophy is focused on quality growth companies. Growth companies by their nature tend to be more volatile than the overall stock market. Company profile is a fundamental assessment, over a longer-term horizon, of the business risk of the company relative to the broader William Blair universe. Factors assessed include: 1) durability and strength of franchise (management strength and track record, market leadership, distinctive capabilities); 2) financial profile (earnings growth rate/consistency, cash flow generation, return on investment, balance sheet, accounting); 3) Other factors such as sector or industry conditions, economic environment, confidence in long-term growth prospects, etc. Established Growth (E) - Fundamental risk is lower relative to the broader William Blair universe; Core Growth (C) - Fundamental risk is approximately in line with the broader William Blair universe; Aggressive Growth (A) - Fundamental risk is higher relative to the broader William Blair universe. The ratings and company profile assessments reflect the opinion of the individual analyst and are subject to change at any time. William Blair & Company, L.L.C. and its affiliates may trade for their own accounts as market maker, may have a long or short position in any securities of this issuer or related investments, and/or may be the opposite side of public orders. The compensation of the research analyst is based on a variety of factors, including performance of his or her stock recommendations; contributions to all of the firm's departments, including asset management, corporate finance, institutional sales, and retail brokerage; firm profitability; and competitive factors