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 Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Doc Savage who wrote (6316)	12/12/1997 4:59:00 PM
From: Webster	Read Replies (1) \| Respond to of 152472

Ah, the good Doc sums it up. If you are an hourly trader this has been one hell of a day. I agree anyone who purchased today will be in good shape before the end of 3/31/98 which is approximately 90 days away. Web

To: Doc Savage who wrote (6316)	12/12/1997 6:23:00 PM
From: IKM	Respond to of 152472

I'm still a bear on this stock. I don't know how the Korean A/R will work out for QCOM, but after this quarter they will face strong competition and big time margin pressure from other handset manufacturers. The network operators are controlling the distribution of product to the end consumer by dint of the fact that all CDMA phones are subsidized by them. They will chase better margins and continue to pressure for lower margins on network infrastructure, i.e., QCOM's royalties. No matter what happens, the CDMA phones from Korea are likely to be a LOT cheaper than heretofore, which means increased market share for them, again at the expense of QCOM's share. Pricing for usage on the network will increase dramatically,as the carriers now have to add capacity and can no longer afford to throw cheap minutes at the market just to get revenue. The increased pricing will drive down demand forecasts from what is currently out there. Not to mention we haven't seen the last of this market correction. I hope I'm wrong for the sake of many of the longs I've come to know, but this stock is only for trading, not investing, for a while.