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: Valueman who wrote (8302)	2/10/1998 12:53:00 AM
From: Candle stick	Read Replies (3) \| Respond to of 152472

FORBES ARTICLE ON QCOM.......NOT GOOD. Looking wan WORRIES OVER exposure to Korea sent the stock price of cell phone pioneer Qualcomm Inc. (Nasdaq: QCOM) tumbling 35% late last quarter. But after the company reported solid quarterly earnings of $37 million on $800 million in revenues in January, shares rallied 22% to a recent $56. A dead-cat bounce. Last year Qualcomm got most of its royalty and licensing fees from Korea, which designed its cell phone network around the company's patented technology. Unfortunately for San Diego-based Qualcomm, fees for equipment used in South Korea are paid in won. Result: It's in for a huge foreign exchange hit. The full damage won't be felt for another two months, since Qualcomm delays the recognition of its foreign royalty fees for one quarter. Qualcomm admits the won drop will sting, but says increasing Korean sales will partially offset the loss. Huh? Financially shell-shocked Koreans are cutting back on luxury items. SK Telecom's subscriber growth dropped by more than half after the devaluation. More bad news: Cell phone handset margins are plummeting in a new wave of competition from Motorola, Ericsson and Nokia. Investor denial has Qualcomm's P/E at 37. The stock could drop 38% by September to 35. Shares are borrowable if you want to short it. -Scott Wooly forbes.com search Qualcomm and read the Feb. 23 1998 article