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

To: ihavenoidea who wrote (76280)	4/14/2008 5:37:52 PM
From: slacker711	Respond to of 196972

Turn that on its head. the destruction of q's business model for purposes of royalty part of the business is priced in the stock.OTOH, the sling shot is pulled back if the business model is validated: stock shoots up. If they lose maybe negative10-30 per cent hit. And a day or two to get out unless your stupid. Pretty good risk reward relationship. thanks for making me think through it. That is the reason I am long the stock. If the market were to price Q as if a win was expected, I would very likely sell. I would add one caveat though. The market is pricing in a reduction to Nokia's rate, but I dont think it is pricing in any sort of catastrophic loss. I dont think that will happen, but I didnt think that Q would be caught hiding documents in the Broadcom case either. Slacker