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

To: Clarksterh who wrote (25538)	3/29/1999 11:06:00 PM
From: idler	Respond to of 152472

redherring.com "It was a double whammy for Qualcomm," says Pete Peterson, analyst with Volpe Brown Whelan. According to Mr. Peterson and other analysts, because the money-losing infrastructure group was weighing down Qualcomm's balance sheet, and because the industry hadn't yet cleared the way for a single standard based on CDMA technology, many investors had remained hesitant to commit to Qualcomm for the long term. This deal uncorked a lot of hidden value. It puts the infrastructure business in the hands of a company that can truly develop it, while allowing Qualcomm and the rest of the industry to move forward and design for a standard with no danger of it soon becoming obsolete. ... Although most analysts agree that the pie just got bigger for all players -- including the wireless carriers like Sprint (FON) and AirTouch Communications ATI), whose revenues grow as more handsets are sold into the market -- they are split as to how bullish it will be for Qualcomm in the near term. With a hefty run-up in its stock price -- at production time, shares were trading at $114.84, up at least 13 percent in the past week -- investors may have gotten ahead of themselves. Several unnamed analysts caution that Qualcomm's handset business could still disappoint rosy industry expectations. Although its chip set and licensing revenue should continue to ramp nicely, Qualcomm's handsets will be competing with the marketing machines of Motorola and Nokia, and that's stiff competition.