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

To: Gregg Powers who wrote (8372)	2/10/1998 9:12:00 PM
From: limtex	Read Replies (2) \| Respond to of 152472

Gregg - These are my concerns long term:- 1. Politicization of the mobile phone industry ( and the WLL industry). In an earlier post I asked what representations had been made by the Finish and Swedish governments on behalf of NOKA and ERICY respectively with respect to any material interest of either of those two companies. These companies are too important to those countries for their governments not to be very concerned were they to slip in any way. Maybe BA and others like it can get the US government to help out internationally where necessary but I doubt Q could get the same level. There are established global players that are good at dealing with "local customs" and politicians around the world. Let these guys take the strain and leave the Q to grow and flourish in the highly creative California technology hot house. All this is going to slow down deployment which brings me to my second point. 2. The longer Q takes to get these systems rolled out the more the opportunity for others to get in or for a competitive system to appear ( agreed not in sight at the moment but we are in a high tech world so I wouldn't rule it out). 3. The Q reputation is now well enough established in the world industry that were it to concentrate on the intellectual property and develop their patent assets they wouldn't have to worry about the kind of little local problem that occured in Russia and no doubt will occur elswhere. With the right partners Q will get its products deployed accross the world that much more quickly and that will tend to maintain margins. The converse is also true. Having said that I think the Q's management will drive the business into the big league. SHORT TERM Who knows but my guess is that the stock is at best going to drift until either the announcement of a v.good contract or installation or a quarters results showing that the Korea problem is history. Regards, L

To: Gregg Powers who wrote (8372)	2/10/1998 9:27:00 PM
From: Carter Patterson	Respond to of 152472

Thanks for your response to my royalty question yesterday. I am pleased to read your comment that handset manufacturing can be a profitable business. Now all we need to do is get the analysts to focus more on royalties and the entire world opportunity for CDMA. QCOM will have to handle the rest. As an aside, do you follow Metromedia International Group - MMG. The company started life as Fuqua Industries then became Actava and is now one of John Kluge's vehicles, which among other things, is building CDMA WLL systems in places such as China and Russia. They seem close to the Chinese government if dinner with Zhiamen (sp?) means anything. I have never seen MMG's name mentioned in relation to QCOM/China. Wonder where MMG buys its infrastructure ? I assume they must be buying the QCT-1000 from QCOM unless Samsung makes fixed sets already. By the way MMG has been a dog stock for about 10 years. It was asset stripped for about 5 years prior to Kluge. Maybe it will have its day before Kluge gets much older.

To: Gregg Powers who wrote (8372)	2/10/1998 10:20:00 PM
From: Valueman	Respond to of 152472

Gregg: I don't understand how you come up with $180 million as the value of QCOM's stake in G. There are 116.2 million fully diluted G LP units. QCOM owns 7.44 million and QCOM China owns 730,000. That gives roughly a 7% total. The resulting value is $488 million. If we net out the debt(notes, bank, vendor financing which includes QCOM), the stake is worth $376 million. I have given no value to the share in management fees that QCOM will receive once the service is turned on. They will split the fee with Loral--2.5% of first $500 million in revenues and 3.5% of anything above that. Can you derive your figure for me? Am I missing something?