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: Jacob Snyder who wrote (93454)	7/22/2010 1:02:13 PM
From: DanD	Read Replies (1) \| Respond to of 196652

Qualcomm makes money on licenses and chipsets. Everything else they do, they lose money. They have also proved that they are questionable when it comes to developing new technologies. Snapdragon is the only promising technology they have produced in the last ten years. And it ain't really new. It's just a decent mashup of existing tech. (But then again, so is the iPhone). Mirasol was a purchase. OFDMA was a purchase. BREW has treaded water, but iPhone and Android has shown that was an execution problem. The chip and royalty business profits will continue to get squeezed, and will require investment on R&D, and strategic acquisitions to keep them high and there is little guarantee that it will lead to anywhere close to the CDMA royalties. Everything Q does from here on out will be a "gamble". There is no guaranteed growth in CDMA or LTE. Returns will slowly diminish over time. Real estate investment and leasing of spectrum to "partners" would, in my view, be one way to take some of the huge amount of concentrated capital Q now enjoys, and create a royalty stream from leasing it, for decades to come. Of course there are risks, but I am not talking about new technology deployments, which, yes, Q has sucked at. (You know except for CDMA phones; which they sucked at, but primed the pump "proved" the CDMA market. And Omnitracs... ) I am talking about buying up spectrum cheap in developing nations like India, and leasing it, after some development and creating a revenue stream on top of a growing asset base. You know, like Real Estate? I also believe in growing the dividend (over time). And that a one time dividend is worthless for growing share holder value over time. Yes, good management learns from their "mistakes", but they also recognize what parts of those "mistakes" turned out to be successes. And try to capitalize. Sorry... done ranting. Dan D.