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

To: Clarksterh who wrote (25007)	3/25/1999 12:51:00 PM
From: John Stichnoth	Read Replies (2) \| Respond to of 152472

Clark, two points: 1. Ericy will likely make more money off the infrastructure business than Q could. Thus, they increase their own value more than Q could in the long term. 2. There is benefit in having cdma adopted as the common "language". We've seen risk reduced for both parties, but the expectation was already there that cdma was the winner, so the party likely to gain more today was ericy--who were increasingly viewed as an outsider for future development. Go back and compute the price change from 2 weeks ago, or a month ago, before the rumors started, and you can see how the agreement enriches each party. Certainly the agreement was partially figured into the Q share price--based on posts to this thread! Best, JS

To: Clarksterh who wrote (25007)	3/25/1999 12:52:00 PM
From: straight life	Read Replies (2) \| Respond to of 152472

and Q's price is dropping now that the C.C. is over; I couldn't listen to it... was it bad???

To: Clarksterh who wrote (25007)	3/25/1999 1:47:00 PM
From: DaveMG	Respond to of 152472

Don't forget the market IS NOT rational in the short term. You could buy Q at 82 yesterday morning and 80.5 Tue morning, and ERICY has just regained about what it lost yesterday. Also Ericsson's low price of 22$ and higher liquidity makes it the more likely candidate for traders.. You guys are jumping too quickly to conclusions..Unless we incorrectly gauged the power of Q's patent portfolio and competitive position there would have been no reason to sign off on a shitty deal. So either we were wrong, or more likely IMO, we should just relax... And what does it mean QCOM would be losing it's ability to innovate. I assume a lot of the innovation that ends up in infrastructure is ASIC dependent, and that if they felt the crown jewels were threatened by the sale they wouldn't do it... Look at a company like PMCS, how well they've done AFTER they became a fabless chip co. And perhaps the 3G tradeoff is worth it in terms of royalties,a rather high margin cash flow...Dave

To: Clarksterh who wrote (25007)	3/26/1999 1:16:00 AM
From: JMD	Read Replies (2) \| Respond to of 152472

Clark, your MSFT selling DOS too early in the game is tempting but I'll take a run from a different angle. First, I don't think it's very productive to attempt to measure the wisdom of the market's response: this is the same market that thinks e-bay is worth more than most companies in the known universe. Sorry, ain't buying it. Besides, if Ericy's market cap took a bigger one day bounce, it would be equally valid to argue that it's coming off the floor whereas the Q has been sporting a nice run for the last couple of weeks. Why not compare differential increase in market caps over a different time period? But that's just chatter. More substantive, I think, is to take Irwin at his literal word: this deal is about comparative advantage. It let's the Q do what it does best, ditto for our new best friends. I'm thinking Microsoft and Intel. Face it, Ericy has greased every government offical on the planet for decades. No doubt you are correct that the profit margins on that stuff are big time, and Ericy has got that part of the game wired. Meanwhile they can't make an ASIC to save their kronor while the Q spins 'em out like very profitable hot cakes. As to the loss of human talent, well that would be very concerning. But my guess is that the Q knows how to recruit, and retain, the very best in the business. Think I'll hang around for a while. Kind regards, Mike Doyle