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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (7388)	2/2/1998 7:02:00 PM
From: dougjn	Respond to of 152472

Ramsey, if you're right about the impact of Korea on Qcom earnings going forward, it seems to me the Q is a major buy here, despite the move up from the low lows. (I have an intermediate sized position at avg. price of a bit below 50. Might even up it a bit on some pull back.) As you will recall, I joined you in Nov/Dec in feeling Asia was gonna be worse than expected and was not yet sufficiently discounted in the market. Of course the Q is a lot lower here, despite the recent upward moves. My big worry about the Q has been Korea. The conf. call did not allay that concern much for me; rather it seemed that due to Korean inventory levels and other facts, there were substantial lag factors that kept any possible effect from showing up yet. But given that Korea is about tied for 1st place in ASIC volume with US (Q's internal use at QPS), it seems the magnitude of effects Could be very large. How it will in fact shake out I really have a hard time judging. Are we so sure, e.g., that Korean manufacturers such as Samsung are gonna have the ready additional capital they need to take advantage of some pricing advantages, given that local labor content has gone down in dollar terms? Aren't they likely in any event to put most everything on hold while they assess the demands upon their resources? After all, lack of financial controls, transparency (which appears to be almost as bad inside the Chaebols as in what they present to the outside) is a good part of the problem, n'est pas? On the other hand, Q has certainly discounted a heap of problems in even its current, somewhat recovered price. In a quandry. Doug