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

To: marginmike who wrote (24685)	3/22/1999 8:35:00 PM
From: 2brasil	Respond to of 152472

Leap bidding status still uncertain WASHINGTON, March 22 (Reuters) - Leap Wireless International Inc. (Nasdaq:LWIN - news) will be bidding in this week's U.S. wireless license auction but federal regulators could bounce it from the proceedings shortly thereafter. The wireless telecommunications provider, spun off from Qualcomm Inc. (Nasdaq:QCOM - news) last year, is hoping to win licenses reserved mainly for new and small businesses at a Federal Communications Commission auction starting on Tuesday. The problem is an option Qualcomm retained to purchase about 18 percent of Leap's stock. Under FCC rules, the possible ownership stake by Qualcomm, with more than $3 billion in sales last year, could make San Diego, California-based Leap ineligible to bid for most of the licenses at the auction. Leap officials on Monday declined to comment. The FCC conditionally approved Leap as a bidder for so-called C-Block and F-Block licenses at Tuesday's auction. More than 95 percent of the 347 licenses being offered are in those two blocks. FCC officials said Leap's qualification as a bidder could be revoked when the company's status as a small business is decided. That decision could take anywhere from a few weeks to a few months. On March 5, Leap asked for 30 more days to amend its original qualification request made last year. The March 5 letter followed complaints from the U.S. Small Business Administration and other wireless carriers that Leap should not qualify for the new and small company licenses. FCC officials on Monday said they had not received Leap's amended request yet. The issue first arose in October, when Leap sought to acquire four wireless licenses for $20 million from Airgate Wireless LLC. Airgate won the licenses, covering several cities in North and South Carolina, at a previous government auction reserved for new and small companies. Under FCC rules, if the C-block licenses are transferred to a company that would not have qualified for the auction, the acquirer must pay a substantial penalty. So Leap asked the FCC to qualify it as a ''very small business'' under the agency's rules. That would allow Leap and its Cricket Holdings subsidiary to buy the Airgate licenses without paying a penalty and also to participate in the upcoming auction. The Small Business Administration and competitors objected, arguing that if Qualcomm exercised its option, Leap would not qualify. More Quotes and News: Leap Wireless International Inc (Nasdaq:LWIN - news) Qualcomm Inc (Nasdaq:QCOM - news) Related News Categories: US Market News Help Copyright © 1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. See our Important Disclaimers and Legal Information. Questions or Comments?

To: marginmike who wrote (24685)	3/22/1999 10:25:00 PM
From: Keith Feral	Read Replies (2) \| Respond to of 152472

Mike: Speculation about a buyout is being driven by ERICY who is desperate to prop their stock. As for QCOM, I would like to refer to the report by Forward Concepts last year. They reported that CDMA handset sales would reach $19 Billion annually by 2003. Let's take a 7% royalty rate for QCOM - $1.3 Billion. Do you have any idea what the EPS would be today with only 70 million shares outstanding? Royalties alone would genrate almost $20 a share in EPS in 2003. Just for fun, let's throw a PE of 30 on $20. That yields a price target of $600 per share by 2003. I think Maurice's projection that QCOM will hit $200 per share by the end of the year is very likely. I would like to start another side bet. How many stock splits will shareholders receive in the next 2 years? I am betting that the stock will split 3 times between now and the end of 2000. I think the first one will come after the earnings announcement on April 20th. As for CSCO, I'll bet they would just love to acquire QCOM. Who wouldn't? QCOM better split the stock and get the market cap up to $10 billion before any offer would begin to look appealing. 2.5 times revenues would still be a steal for a company like CSCO or MSFT looking to buy growth. Typically, 3 to 5 times sales is the norm for a high growth company. QCOM is currently ranked as the 3rd highest growth company in the US. Ultimately, an appropriate M & A model for a buyout should fetch $12 to $20 billion in market cap for the current shareholders. One important thing to keep in mind, the current share price of QCOM means nothing condisering the fact there are only 70 million shares outstanding. As of today, the Price to sales model is about 1.5 times FY 99 revenue projection. I would not think the bidding for QCOM could reasonable take place below $180 per share. Top end bids could fetch as high as $270 per share.

To: marginmike who wrote (24685)	3/23/1999 1:05:00 AM
From: Jim Lurgio	Read Replies (1) \| Respond to of 152472

The other side of the coin Mike. Don't get upset just evaluate the source. It could be their all wrong but who knows ? Competition is healthy but when a partner of yours plays both sides one must think ? This is not a negative but just food for thought.? biz.yahoo.com