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

To: James Connolly who wrote (20139)	12/20/1998 2:59:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 152472

Another Article, More Optomistic> Global wireless standard is sought \| Consortium may ease Qualcomm, Ericsson dispute The San Diego Union-Tribune European and Asian telecommunications companies declared yesterday they would "build a bridge" between wireless technologies developed by San Diego-based Qualcomm and its Swedish rival, Ericsson. The move could ease uncertainty surrounding the development and deployment of new and larger capacity wireless systems, known in the industry as third generation, or 3G, a frontier worth billions of dollars. The consortium of companies, which includes Japan's NTT Mobile Communications Networks and [ British Telecommunications plc ] , agreed to discuss altering their operating systems to accommodate a convergence of Qualcomm's and Ericsson's latest technologies -- which are currently incompatible. "The ideal is to establish a worldwide . . . communications platform based on a single technical standard," the companies said in a joint statement. Qualcomm's code division multiple access technology, or CDMA, was first to market and is deployed widely in the United States and Korea. Ericsson's technology is based on global system for mobile communications or GSM, and is being deployed in Asian and European markets. Qualcommm has argued for a convergence of the two rivaling technologies so that its existing technology would be compatible with Ericsson's latest offerings. Ericsson recently proposed a compromise some analysts described as disingenuous. "We think it's significant that a group of international companies publicly embrace convergence," said Bill Bold, Qualcomm's vice president of government affairs. Others did not think the announcement was all that earth-shaking. "There wasn't a whole lot there," said Pete Peterson, an analyst with San Francisco-based Volpe Brown Whelen and Co. "We were wondering whether there was something coming out later." Ericsson representatives could not be reached for comment. The two companies have been in dispute since 1995, when Ericsson asserted eight patent-infringement complaints against various elements of Qualcomm's digital-wireless equipment. In October, Ericsson dropped five of its eight claims, a retreat many saw as a boost to Qualcomm. The case is scheduled to go to court next year. "I think the tide is turning against Ericsson," Peterson said. Moreover, Peterson said the lawsuit has compelled the two companies to talk about other mutual issues, which may lead to compromise. "There is direct . . . communication ongoing," Peterson said. "The lawsuit forces the communication between the two, and they have used the forced path to at least exchange ideas on other things." (Copyright 1998) _____via IntellX_____ Publication Date: December 20, 1998 Powered by NewsReal's IndustryWatch ...back to top

To: James Connolly who wrote (20139)	12/20/1998 3:03:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 152472

Smart Money Leaving "Telecom"?> Top Funds Pare Ericsson, Alcatel, Hit By Emerging Economies' Ills Investor's Business Daily The "smart money" is saying goodbye to some of the world's major telecom stocks because of financial problems in emerging markets. L.M. Ericsson Telephone of Sweden and Alcatel Alsthom of France were among telecoms sold by top mutual funds. IBD surveys funds rated at least A-. Tracking their selling is a good way for investors to keep abreast of potential weakness in a stock. Some other names that dotted the selling list include CompUSA, Raytheon, Diamond Offshore Drilling and Inland Steel Industries. The selling in overseas telecoms was a bit of a surprise. The reason? IBD's Telecommunications-Equipment group - which includes Ericsson and Alcatel - is rated 19 out of 197 groups for six-month price performance. The Telecommunications-Cellular group is 34th. Ericsson peaked at 34 on July 20. It fell to 15 by Oct. 8. That was due to weakness in the stock market and a deceleration in earnings growth. The firm's earnings gains for the latest three quarters slowed from 68% to 33% to 11% and then to 5%. From its October low, Ericsson rallied to 291/2 by Dec. 9. However, the next day it gapped lower after forecasting a weaker- thanexpected fourth quarter. The stock has since retreated to 23. Ericsson blamed the economic slowdown in Asia and Latin America. The Street expected a 12% rise in fourth-quarter net to 36 cents. That's been cut. Standard & Poor's, for example, now looks for only 27 cents, a 15% drop from a year ago. Alcatel is a battered issue. It tumbled from 471/8 on July 16 to 16 by Oct. 1. The stock gapped down 12 points Sept. 19 when it disclosed operating income would be hurt by the financial crisis in Southeast Asia and Russia. Alcatel gets 40% of sales from telecom equipment such as cables and batteries. It also makes power-generation equipment. Analysts see an 18% rise in earnings this year to $1.14 a share, according to First Call. That's down from a previous forecast of a 50% gain to $1.55 a share. Vodafone Group's stock is faring better. However, IBD found 15 funds selling the U.K.-based cellular network operator while only five bought. The stock has a Relative Strength of 94 and a 96 Earnings Per Share rating. It rallied aggressively to get to 151 after falling to 96 in early October. It avoided the carnage of its Swedish and French brethren because it was not in Asia or Russia. Vodafone's business is mostly in the U.K., Western Europe and South Africa. Some analysts do express concern about Vodafone's valuation. The company sells with a 48 price-earnings ratio, while its earnings growth should be only 20% to 25%. A majority of top funds unloaded CompUSA, which runs 207 computer stores. The stock is a laggard. It topped out in December a year ago at 38 after a two-year run from 7. It now trades near 13. The decline in the stock was due to three quarters of subpar results. Earnings for the fiscal year ended June 30 fell 30% to 69 cents a share. This fiscal year, analysts see just a modest recovery with net up 7% to 74 cents a share. Diamond Offshore came under heavy selling. The stock is in the struggling oil-service sector, which has been hurt by weak crude prices. Diamond staged a rally in October from 21 to 333/4. It's sagged back to the low 20s. Analysts see net declining 13% in '99. IBD found 35 top funds selling Raytheon's stock, while 26 bought. The stock is now breaking down after getting to 597/8 in late October. It's trading near 51. The aerospace firm's earnings this year will rise only 5%, according to First Call. Next year, analysts see only a modest 8% gain. (Copyright Investor's Business Daily, Inc. 1998. _____via IntellX_____ Publication Date: December 18, 1998 Powered by NewsReal's IndustryWatch ...back to top