Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: slacker711 who wrote (80675)	9/30/2008 9:55:48 AM
From: A.J. Mullen	2 Recommendations Respond to of 197300

Deutsche Bank is out with a research note this morning saying Qualcomm (Nasdaq: QCOM) "offers some resilience in difficult economic times." I think Qcom will offer considerable resilience, although it won't be immune of course. Some will not update their phone in rough times, but counter-intuitive things can happen. For those who want to impress, a new phone is so much cheaper than a new car, or even a new suit. Earnings are very well distributed geographically. If the dollar declines, Qcoms earning will tend to rise. Ashley

To: slacker711 who wrote (80675)	9/30/2008 11:53:07 AM
From: David E. Taylor	2 Recommendations Read Replies (1) \| Respond to of 197300

DB "stress tested" its model....I have not seen that descriptive term used before but their results are similar to those I posted earlier. Even a decline in global total handset sales growth to zero still results in an increase in WCDMA handset sale as WCDMA gains an increasing market share in the GSM installed and still growing base. So while slowing handset sales growth does decrease QCOM's revenues/earnings, the net effect is not that great. In my model, the decrease in FY2009 EPS is 4.5% and 9% respectively for total worldwide handset sales growth at 5.4% (half current estimates) and 0%. Even if the current economic turmoil cuts handset sales growth significantly worldwide, QCOM's FY2009 will still be very good. David