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

To: peterk who wrote (71229)	11/15/2007 8:47:03 PM
From: quartersawyer	Read Replies (1) \| Respond to of 196605

not one of the skeptics ever responds to such an enlighten article but is quick to critize Q "eyes wide open all the time" - J. Cash Goldman: Nov 15, 2007 Upbeat Analyst Day; Resolution of key legal issues expected 2008 WHAT'S CHANGED: Qualcomm hosted an analyst day in New York providing an overview of the key drivers in its 2008 outlook as well as an update on the current legal landscape surrounding Nokia, Broadcom, and the EU. Following today’s updated guidance, we are reducing our FY2008 EPS x ESO estimate to $2.04 from $2.10 ($0.02 due to acquisition, remainder due to stronger than expected negative impact from litigation/Nokia and slightly lower QCT margins). Our FY2009 and FY2010 EPS estimates remain unchanged. IMPLICATIONS: Our bottom line message is that we continue to remain buyers of QCOM shares as we believe investors will be paid to wait out the legal battle. 1) We expect to see a reacceleration on CDMA demand over the next several years, particularly in developing countries such as Africa, India, Indonesia, and Malaysia. 2) Additionally, we expect WCDMA demand to be strong in all regions (Europe, Asia, and ROW) for CY2008. 3) Qualcomm’s chipset business remains well positioned to continue to gain 3G market share given breadth of portfolio, including single mode 3G chips and multimode chips for all tiers of the market. In particular, management believes that low cost single mode 3G chips will encourage greater smartphone device diversity in the mid tier ($100 to $150 range) starting in late CY2008. 4) We believe that the legal battle over the coming quarters will move more in QCOM's favor. Recent wins in European courts vs. Nokia are noteworthy. We expect QCOM to gain considerable leverage as it makes progress on enforcing its GSM patents in several courts around the world. VALUATION: Our 12-month price target of $58 is based on 24X CY2009 EPS (ex-ESOs) of $2.39, supported by QCOM’s high profitability and strong cash generation. the analyst primarily responsible for such report as follows: I, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.