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

To: mmeggs who wrote (17635)	11/3/1998 8:56:00 PM
From: ElmoDog	Read Replies (1) \| Respond to of 152472

I also posted the following on YHOO... QCOM was suggested to me recently as a potential short. I'm looking for some straight answers -- I'm not trying to take a negative bent. I'll go long or short. I'm leaning towards shorting this but I need more info. 1. Do the analysts estimates of $0.50 include the "equity in the losses of affiliates" line. This line item has appeared in prior FY98 quarters and thus is not news. The issue in my mind is not whether it is extraordinary but whether the comparison to consensus is apples-to-apples. The way that the company reported earnings, with a simple explanation, but without a separate categorization of this hit, leads me to believe that maybe this was included in projections. I have no idea and I can check in the AM when I get to work, but I'm sure someone has the answer. 2. Before leaving work, I was able to check revenue estimates -- several analysts, particularly the ones at $0.54-$0.56 (and there were 3 or 4 of these) had projections in the upper $900MM range. On the other hand, gross margin appeared higher than expected. Any comments? 3. Any comment on the quality of earnings as it relates to the balance sheet? Any info on the conference call? Reconciliation of the 3 A/R accounts (ST A/R, ST fin. receivables, LT fin. receivables -- what is this last account, by the way?). What about the increase in inventories relative to revenues? 4. What are "other current assets" (prepaid expenses?) and why did they increase by $100MM? I'm not being cute. I've stated that I'm considering shorting this. And I think these are reasonable questions. Thanks in advance.