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

To: JeffreyHF who wrote (143312)	7/5/2006 7:48:27 AM
From: barty	Read Replies (1) \| Respond to of 152472

<Nokia is a paper tiger, full of megalomaniacle delusions, but lacking substance and integrity.> = PATHETIC. Hope that's clear. secondly - you pointed out <Equally pathetic is justifying one`s position by pointing to short term variations in stock price, or attempting to isolate which of the many factors are responsible for such fluctuations.> Q's shares have gone from an all time high ($53) to $39 (-26%) inside 8 weeks (while there has been a deluge of newsflow on royalties) and your telling me not to conclude this suggests the market might be discounting a lower royalty rate in WCDMA??? Why don't you run DCF comparing what is being discounted at $53, and compare that to what is discounted at $39. Let me give you a clue - QCT assumptions should not change and neither should its net cash pile. Frankly the fact that the market is already discounting this is a good thing for Q shareholders. It means the risk/reward looks more attractive.

To: JeffreyHF who wrote (143312)	7/5/2006 7:53:28 AM
From: hedgefund	Respond to of 152472

I've been long Q for more than ten years; this looks to be one of the more difficult times over that decade or so. There are folks out there who think Nokia will win a concession from Q on royalties. For example, SSB says: The consensus belief is that if the two companies reach an agreement, Qualcomm will have to accept a reduction in the net royalty received from Nokia. While this impacts their royalty business, it allows their WCDMA chipset business to remain without impact. Our sensitivity analysis suggests that a 100 basis point reduction in the royalty rate would reduce our EPS by roughly $0.01 per quarter or roughly $0.04 in calendar 2007. I understand other analysts have opined that Q has the upper hand in these negotiations but there are analysts who have a contrary view and the market appears to be voting with them, as much as I hate to admit it.