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

To: Webster who wrote (10784)	5/21/1998 11:41:00 AM
From: Gregg Powers	Read Replies (2) \| Respond to of 152472

Webster: Hype does not create value long-term. Moreover, if QC had a completed contract, I am certain that it would have announced it. The first piece of material information is that the consortium has won 94mm pops; the follow-on disclosure will come after the contract is negotiated and executed. There are far more moving parts than you appreciate. During my conference call with Dr. Jacobs last week, he indicated that there are a number of large spectrum operators who are looking to participate in the venture (i.e. buy an equity stake in the consortium). QC is in active negotiations with a number of these players and there is no point in rushing this process and potentially creating a sub-optimal outcome. The Mexican network will take QC's infrastructure group into the big leagues and should materially accelerate the division's timeline to profitability. This delta, coupled with improving fundamentals throughout the business, should pave the way for extremely strong earnings growth during FY 99 (which begins with the December quarter). In my mind, what was "probable" before (in terms of FY 99 earnings) has become far more certain. As the Street figures this out, the stock will react accordingly. In the interim, I actually appreciate management's low key approach to investor relations because it provides an edge to those who are truly well-informed. The greater the gap between internal corporate reality and external perception, the greater the opportunity for appreciation (or depreciation as the case may be). Best Regards, Gregg