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

To: limtex who wrote (12616)	7/21/1998 7:36:00 AM
From: Jon Koplik	Respond to of 152472

Limtex - Qualcomm was recently added to the S&P 400 mid-cap index, NOT the S&P 500. (Which is a very BIG difference). If things keep going well for QCOM, it might be added to the S&P 500 within a few years. Jon.

To: limtex who wrote (12616)	7/21/1998 9:38:00 AM
From: Gregg Powers	Respond to of 152472

limtex: QC's depressed stock price is actually not much of a mystery and I differ with the notion that Wall Street is totally asleep. Stock prices, over time, track corporate fundamentals and earnings, more than any other metric, are the report card for the same. QC's earnings have been depressed for the last six months due to the Korean crisis (lost hardware shipments and reduced royalties against an infrastructure intended to support a larger business) and some manufacturing problems at QPE. I remember acutely (and painfully) how some on this thread (anybody remember Candlestick) suggested QC's stock was headed for the low 40s or even the 30s due to the earnings shortfall. Against the backdrop of depressed earnings, I actually think the stock has performed reasonably well. Sure, it has not kept paced with companies whose earnings are "in gear" such as Lucent or Nokia, but I presume that we are all much happier than Motorola's owners. This is not to suggest that I am satisfied recent stock performance...this just suggests that I understand it. Rather than wringing our hands about what was, I think it is much for useful to think about what will be. QC has crossed the chasm and its business is now less dependent on Korea. Meanwhile, the Korean won has recovered fairly dramatically, the crisis seems to have subsided within the country and domestic handset sales continued relatively unchecked. The Q800 is in production, the QCP manufacturing problems should be behind the company (while demand continues to exceed production capacity), the ASIC business is booming (and should benefit further from Japan coming on line), the infrastructure business has reached critical mass, Globalstar is going into deployment and royalties should begin trending up rapidly again (spurred on by CDMA's rapid worldwide deployment). All the above collectively means that QC should begin delivering the tonic that Wall Street needs to forgive all past sins...earnings. In the interim, it seems silly to complain about the stock's relative underperformance...if the company puts up great September numbers and the stock doesn't move, well then I would argue we have a problem. Best regards, Gregg