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Technology Stocks : The New QUALCOMM - Coming Into Buy Range -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (5119)	5/4/2009 12:27:19 PM
From: Art Bechhoefer	1 Recommendation Read Replies (1) \| Respond to of 9129

future growth of the WCDMA market...the bulk of which is now behind us I find it difficult to believe the bulk of future growth in WCDMA is behind us. Didn't China just recently approve WCDMA? Isn't India increasing its use of WCDMA? What about WCDMA elsewhere in the world, including the U.S.? Even if WCDMA subscribers were growing only at a rate of, say, 8 percent worldwide, wouldn't the growth in revenues for QCOM exceed that amount, simply because a greater percentage of QCOM revenues would come from WCDMA? Nevertheless, I don't see QCOM trading at a P/E over about 25 in the current market and economic climate. I do see potential one-time gains if QCOM decides to split off some of its operations at some point in the future (e.g., MediaFLO). Also, if the administration plan for taxing overseas profits is adopted, I don't see much benefit in holding large sums of cash overseas, which increases the potential for dividend increases, which in turn makes the stock price more attractive. Art

To: slacker711 who wrote (5119)	5/4/2009 1:11:26 PM
From: Jim Mullens	Read Replies (1) \| Respond to of 9129

Slacker, re: “With good general market conditions and if QCOM’s PE was at Fy03’s level (44%) we could be looking at ….. >>>>> Unfortunately, it doesnt make sense to ever have that kind of PE again. That was pricing in the future growth of the WCDMA market...the bulk of which is now behind us.” I also doubt we’ll see QCOM with a 44PE again, but I’ve learned one can be surprised when using “always” and “never ever”. Re: >” the future growth of the WCDMA market...the bulk of which is now behind us.” I doubt the GSA would agree with you on the above, with these stats from their April 09 download. Total World Mobile Subs……….3,933 million GSM/WCDMA………………….3,540 WCDMA…………………………..287 ………………..7% of tot Some are even projecting 5 billion subs is not out of the question within the next several years. Others are saying with the proliferation of converged devices with 3G connections – netbooks, MIDs, PND’s, mobile TV’s, medical monitoring devices, etc, etc----- penetration rates will significantly increase with many folks having several 3G connected devices. Also, WCDMA handset sales represented only ~ 20% of the world market last year, so I’d say the “bulk” of future WCDMA/ LTE / 4G handset growth is still in front of us. But, I agree that QCOM’s future growth rate is tempered in comparison to what it was 5 years ago due to several things ( prospects of lower royalty rates, law of large numbers, questionable economic & market conditions / --- individual & corp tax policies / regulations/ investor concerns, etc >>> limiting GDP & market returns.