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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Dan Ross who wrote (403)	1/8/1998 12:37:00 PM
From: space cadet	Read Replies (1) \| Respond to of 18691

I agree Dan. Technically speaking the stock has strong support in the 40's and looks like it's making a double bottom. It already has fallen from 70 and the easy money's been made. It's way too late to short now. If the market doesn't roll over and die, qcom should move back up smartly. It will probably all boil down to intel's earnings report on Tuesday night. What does everybody here think will happen? That's definitely the tidal wave coming that we all should be preparing for.

To: Dan Ross who wrote (403)	1/8/1998 12:53:00 PM
From: Rick Slemmer	Read Replies (2) \| Respond to of 18691

Dan: Thanks for the analysis. Any short I take on QCOM will be watched carefully; it's a very emotional stock and subject to snap reversals in either direction. Whatever the company's merits are perceived to be fundamentally, it looks vulnerable in the near term technically. Yesterday's gap-down-and-decline confirmed some of the internal weakness that continues to get worse. I fully expect it to test its lows soon, and there's a wonderful trendline across four low points in 1997: January at 39 April at 41 August at 43 December at 46 If the stock drops to 46+ this month, it'll be at trendline support again, but the distribution pattern (the tendency of the stock to close at or near its lows on volume and smoothed over 21 days) is alarming. To me, it indicates that the current holders of QCOM aren't that confident in its immediate future. That makes me wonder whether support will hold, especially in light of recent Asian concern. Before you buy, look at a chart and see how QCOM interacts with its 50-day moving average. I wouldn't buy the stock until the MA flattens a bit. There is some concern among San Diego investors that the royalty arrangement with South Korea is not quite as crystal-clear as some would like. Do you happen to know where I can find the particulars? Thanks again, and good luck! RS