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

To: Maurice Winn who wrote (24156)	3/13/1999 8:53:00 AM
From: Clarksterh	Read Replies (1) \| Respond to of 152472

They are quite desperate to get a presence in CDMA and they need to do it quickly. I suppose they'll be able to bring some leveraged production line experience to bear, which Q! lacked. Having infrastructure would also leverage their marketing, operations and network capabilities. They'll be able to produce QCells to overlay GSM across Europe, probably more effectively than Q! would be able to, in a complete overlay turnkey solution for existing customers. Exactly!!! And it is for precisely those reasons that I would hope that Qualcomm keeps some ownership in the infrastructure division. I would consider a JV like the one with Sony ideal. In addition, if Qualcomm sells the infrastructure division entirely they are going to have a harder time both making and 'selling' improvements in CDMAOne. As I've said before, Hughes does not keep their satellite area because it makes money (it doesn't); they keep it for strategic reasons (e.g. it allows them to pioneer new technologies like DirecTV). This is actually somewhat similar to Microsoft embedding the browser in the OS - it is almost surely a money loser, but it is strategically very important. Clark PS I am not saying that there isn't a 'right price', but has to be very high IMO - probably higher than Ericsson is willing to pay. (e.g. $2.0B in cash, a contract to use only CDMA chips from Qualcomm in their phones and basestations for the next 6 years, a license to GSM with net royalties to Q! of 1 or 2% in a GSM/CDMA phone, and an agreement on chip rate and synch for 3g.)

To: Maurice Winn who wrote (24156)	3/13/1999 9:40:00 AM
From: Jon Koplik	Read Replies (1) \| Respond to of 152472

O.T. - (horrible flow of funds / money supply releated article) (let's please NOT start discussing this stuff, since none of us know what we are talking about). Here is a WSJ article about the latest data on "U.S. Total Nonfinancial Debt." This is a number that is much larger than any of the so-called "M aggregates;" and according to some people who are actually smart enough to understand these sorts of things, is MUCH more relevant than, say, M3. Note that the past few years' growth rate of Total Nonfinancial Debt has only changed by reasonably small percentages. (Money supply growth rate figures swing around much more). Also, note that the magnitude of the number we are talking about is larger than any of the M aggregates. So, next time someone spouts off about "Look at the rapid growth of M2 or M3," you can answer back "Hey, how 'bout those figures on Total Nonfinancial Debt ? ..." March 12, 1999 U.S. Nonfinancial Debt Expanded At 7.1% Rate in Fourth Quarter Dow Jones Newswires WASHINGTON -- U.S. nonfinancial debt grew at a seasonally adjusted annual rate of 7.1% in the fourth quarter, up from a revised 5.5% rate in the third quarter, the Federal Reserve Board said Friday. The Fed said debt held by the federal government grew at an annual rate of 0.7% in the fourth quarter, while private nonfinancial debt grew at a 9% rate. Fourth quarter total nonfinancial debt outstanding borrowing totaled $16.129 trillion, including $3.752 trillion by the federal government and $12.376 trillion by the private sector. These figures were contained in a quarterly Fed report designed to provide better data on domestic nonfinancial debt. The Federal Open Market Committee adopted a 3% to 7% 1999 monitoring range for total nonfinancial debt. Nonfinancial debt includes borrowing by all sectors of the economy except banks, thrifts, finance companies and other financial-service providers. For all of 1998, total nonfinancial debt grew 6.3%, compared with a revised 5.1% in 1997 and a revised 5.2% in 1996. Within private-sector borrowing in the fourth quarter, nonfinancial business borrowing increased at an annual rate of 8.3%, compared with a revised 9.3% the previous quarter. Household borrowing increased at a 10.2% rate, compared with a revised 7.9% in the previous quarter. State and local government borrowing increased at an annual rate of 6.4% in the fourth quarter, compared with a revised 6.2% the previous quarter. State and local borrowing is included in the total private borrowing figures in the Fed report. Copyright © 1999 Dow Jones & Company, Inc. All Rights Reserved.