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

To: Richard Knox who wrote (21136)	1/11/1999 3:11:00 PM
From: Ruffian	Respond to of 152472

Read Into This> Airtouch Deal Will Spark Mobile Consolidation Say Analysts By Kate Norton At Bloomberg News 11 January 1999 European mobile phone companies are set to seek closer ties to combat the threat posed by a link-up between Vodafone Group plc and Airtouch Communications Inc., according to analysts. If Vodafone, the U.K.'s largest mobile phone company, succeeds in its reported $54 billion bid for U.S. wireless company Airtouch, its European peers will face a rival whose network stretches from Sweden to Greece. Providing similar coverage will be critical to winning customers as mobile phone sales in Europe surge 65% annually, analysts said. That means competitors of Vodafone and Airtouch—particularly smaller, independent rivals such as Orange plc and Sweden's NetCom Systems AB—can't afford to go it alone. European mobile phone companies "can't let a Vodafone-AirTouch combination get a head start," said Steve Jobber, an analyst at Paribas Capital Markets. "This could set the [consolidation] ball rolling." Shares of European mobile phone companies have surged over the past year, buoyed by booming demand for mobile phones. Vodafone's shares surged 122% in 1998, for example, while shares of Orange, the number three U.K. mobile phone company, rose 164%. Europe has 85 million mobile users, a number inflated by countries such as Finland where mobile phone subscriptions outnumber those for traditional phones. The prospect of consolidation will provide a further boost to mobile shares, particularly for smaller companies such as Orange, which are likely to be seen as takeover targets, Jobber said. Europe's mobile phone market is ripe for mergers and acquisitions, say analysts, because the existence of a common digital standard across the continent makes it easier for companies to integrate businesses and generate cost savings on products. In the United States, by contrast, there are several digital technologies. Teaming up could help the smaller cellular companies secure faster delivery schedules and better prices from phone suppliers such as world leader Nokia Oyj. They could also cut costs for billing on roaming calls when Europeans travel throughout the continent. Europe's larger mobile operators, meanwhile, will be looking for ways to expand their empires. Mannesmann AG and Deutsche Telekom, Germany's top two mobile phone operators, would be particularly keen to beef up their European coverage to offset hefty domestic competition, analysts said. "Companies like Vodafone and AirTouch, which are very successful in growing subscriber revenue in Europe, will be in a strong situation to acquire or cannibalise operators that aren't," said Peter Richardson, principal analyst at Gartner Group's Dataquest in London. As Europe's market matures and penetration levels reach 50%—from about 20% now—Europe's phone companies will have even more incentive to join forces. With mobile phones becoming more of a commodity, operators will need to offer more than just competitive prices and coverage over a particular area—they'll have to offer a reliable and high-quality service. That will give companies with the clout of a combined Vodafone-AirTouch the edge. Once price becomes less of a factor, the market "will be played out in services", said Paribas' Jobber. "In fixed line, there are many to choose from in terms of quality. If you asked the same question in mobile, you'd come up with only one—Vodafone-AirTouch," Jobber said. Additional reporting by Melissa Pozsgay and Mary Beth Berger

To: Richard Knox who wrote (21136)	1/12/1999 2:53:00 AM
From: Spaw	Read Replies (3) \| Respond to of 152472

Rich, I am not crazy about out-of-the-money options, unless the stock is white hot, like AOL or CMGI or one of those. I would be happier to buy the QCOM Feb. or Mar. 60 calls. Best deal. This mini-rally should continue, but you might see the stock at 60 by the end of the week. More likely 65-70, but who knows, eh? I would really favor the March 60 calls with a hedge, like an even size in the 55 puts or half size in the 60 puts. That would be the judicious trade. If you're bullish in an unbridled fashion, buy the Feb. 55 calls straight up. --spaw--