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

To: Jon Koplik who wrote (15973)	10/4/1998 11:57:00 PM
From: Ruffian	Respond to of 152472

Jon & All, ferspag, who posts on the Yahoo Q thread has alot of exitement and perspective about where the Q is going; Finance Home - Yahoo! Message Boards Help - Edit Public Profile - Personalize - Sign Out Top:Business and Finance:Stocks:Technology:Communications Equipment:QCOM (QUALCOMM, Inc.) <- Previous Next -> Message 8616 of 8618 Reply Revenue Model ferspag Oct 4 1998 11:20PM EDT I have read the report by Mark Robers at Everen. He is very sharp & provides a very thorough anlysis. Everen has been pounding the table on this stock for a long time. Right after earnings came out, I heard Gregory Nie on CNBC make the comment that QCOM was one of the best mid cap stories that Everen was following. The range of estimates is now $0.50 to $0.55. Cena at Smith Barney came out and said that he thinks QCOM has a lot of potential for upside surprise this quarter. I have followed these guys very closely to get a good feel for their valuation models. The expectation for QCOM to deliver a $1 billion quarter is a foregone conclusion. Communication Systems $470 to $500 for handsets $160 to $180 for ASICS $160 to $200 for infrastructure $75 to $85 for OmniTRACS $10 for Eudora Contract Services $75 million for Globalstar gateways Royalties $35 to $67 million This is where most of the fluff is being generated. Analysts are trying to use est's around $40 to $45 million in order to let QCOM generate some upside surprise. At the $950 million level before royalties, I think it is fair to assume that QCOM will add at least $3 million to last quarter $47 million to achieve a round $50 million royalty and $1 Billion quarter. Cena at SSB is indicating that the gross margin is expanding from 24% to 28% in 1999 as the growth of rev's will be much greater than the growth of exp's. How much of the margin expanion can we expect this quarter? Things get much better for the December quarter too. The introduction of the Q 800 will have a big impact on phone rev's, 5th G ASICS will start shipping, and infrastructure will contine to accelerate for Pegaso, OzPhone, and WLL in emerging markets. Rev's are going from $3.2 billion to $4.5 Billion for 99 according to indications by most of the analysts. With only 73 million shares, this stock is extremely undervalued. QCOM: Quote \| Profile \| Research \| Insider This Is a Reply to: Msg 8615 by stockbagger <- Previous Next -> Message 8616 of 8618 Reply Free Real Time Quotes. Create your own club at Yahoo! Clubs Go to: Start \| Most Recent \| Message List \| Msg #: All Boards Only in this Board All Boards & Topics Authors Terms and Conditions Yahoo! is a trademark of Yahoo! Inc. Copyright © 1994-98 Yahoo! All Rights Reserved.