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

To: Sawtooth who wrote (11450)	6/12/1998 6:09:00 PM
From: Joe NYC	Respond to of 152472

Tim, Haven't seen you around here much lately I am still lurking. I don't have a position in QCOM at this time. I will probably jump in in next 3 months. I agree with Jim Frost and Gregg about the value of Qualcomm's business, but there are other negative forces at play that in short will probably keep the stock at present level. The negative forces are the overall market condition that doesn't look very healthy. The other is bad press regarding the whole 3G issue. I think it will continue. So far, Ericsson's intimidation has kind of worked. It creates a lot of FUD, which depresses the stock price. I think Ericson will go all the way to the edge, hoping that QCOM blinks, before they settle. I think QCOM could raise the stake by somehow announcing declining royalty rates based on the number of years the the technology was licensed. Say 6%, 5%, 4%, 3%, 2% on year 1 through 5. With these rates, the longer Ericson delays licensing QCOM IPR, the more it would cost them in the long run. Of course the strategy would be bad in a sense that QCOM would be discriminating between the licensees, which is just the opposite of the image QCOM is trying to project. It could be a good negotiating tool though. Joe