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

To: brian h who wrote (7602)	1/26/1998 5:16:00 PM
From: Caxton Rhodes	Respond to of 152472

Qualcomm's Asia exposure a negative ------------------------------------------------------------------------ DON BAUDER 25-Jan-1998 Sunday "South Korea's financial difficulties will hurt Qualcomm's profits in fiscal 1998," says George I.H. Rho of Value Line, but he nonetheless gives the stock the highest (1) rating for timeliness, although a below-average (4) for safety. "Korea currently accounts for most of the company's royalty income, which, along with licensing and development fees, totaled $152 million in fiscal 1997," says the analyst. This revenue stream will certainly tumble; Korea's currency has been about halved, says Rho. Last week, in announcing record earnings, Qualcomm warned analysts of its Korean exposure. Rho has cut his 1998 earnings-per-share estimate by 15 cents to $2.05. However, Qualcomm's fundamental business is sound and will remain so for many years, says Rho, looking for earnings per share to rise at a 25 percent annual rate through 2000-2002. The stock rose on last week's earnings news, but the earlier big sell-off makes it an excellent buying opportunity, he says. Standard & Poor's Outlook features 26 analysts' favorites for 1998. Qualcomm, which has S&P's highest five-star rating, is one of the stocks on that list. "The company's wireless telephone operating system (code division multiple access, or CDMA) has huge potential," says S&P.