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

To: gdichaz who wrote (16984)	10/23/1998 12:11:00 AM
From: Maurice Winn	Read Replies (2) \| Respond to of 152472

Chaz, I have to think that Ericy buying The Q! is an option. The royalty stream, ownership of the whole CDMA issue, rapid time to market for a non-vapourwear W-CDMA, cheap Globalstar, Omnitracs, ASICs, Eudora, pdQ and other handsets, joint ventures, Leap relationship, infrastructure, 10,000 highly talented people and all the right markets makes it sickeningly obvious that The Q! is a pearl that would fit extremely well in the recently announced L M Ericsson string of pearls acquistion strategy for small to middling highly innovative companies. Which presumably should fit their business well. They immediately save both teams legal fees, which Dave[3] reckons is enough to justify anything, they immediately avoid all delays, they immediately gain a high value income stream in royalties, handsets and other sales, they control the future of CDMA and communications in IP [internet protocol], they give Microsoft the frighteners. They have a depressed QUALCOMM price at the moment. They have got people [enough of them anyway] psyched out over intellectual property and all the 3G trials and stuff. They've got SETI in their pocket. They can immediately dispose of a massive trade dispute looming with the USA so the politicians will do what they say. Expect an offer soon. Certainly before the Texan case. In terms of working with QUALCOMM management, they don't need to. Sack the lot, but keep the other 9,500. The hard work in QUALCOMM and cdmaOne has been done. But if I were Lucent, having just failed in a Philips CDMA joint venture, I wouldn't be happy to see L M Ericsson pick up QUALCOMM without a fight. There is synergy galore with Lucent, who have got stacks of cash and share value. Heck, even Nokia might think the competition worth it and they have got a good share price backing them. No way will they want to suddenly see L M Ericsson owning that lot. Even at $100 per share, it only puts The Q! at $8bn or something. Mere pocket money for the $1bn in royalties alone which will be flooding in within a few years. Then add in the other divisions and the money dropping out of QUALCOMM will be obscene. Janet Reno will be licking her lips. I hope The Q! is making campaign donations to Al Gore. Assume Ericy loses the Texan case in a clean sweep, what then? QUALCOMM will be away laughing. Time is not on Ericy's side. They must act, and soon. Charlene Barshefsky is doing a great job. She said on CNN today that the Europeans are not being helpful, but the USA is going to be insistent. She specifically mentioned steel and autos. Saying Europe should take Russian steel. Didn't mention telecoms, but that is part of the deal. The USA political system, trade and military systems are aligned with The Q! The USA doesn't take kindly to being ripped off. Especially big time and when they are running a world record trade deficit. Expect Europe to cave in to QUALCOMM. Expect Ericy to resolve the whole issue with a purchase [if they can raise the shekels to beat off Lucent, Nokia, GEC, and others]. Expect it as a Xmas present. Mqurice