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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (994)	4/3/1999 11:31:00 PM
From: Mr. Sunshine	Read Replies (2) \| Respond to of 54805

"...As a result, they generate meager 3% gross margins..." Frank, keep in mind that QCOM has recently shed two of thier money losing ventures. They spun off Leap Wireless (LWIN) in October and have now sold the infrastructure division. Both of these ventures fulfilled strategic goals, but were large negatives on the balance sheet. With the disposal of these two net income draining items, the substantial increase in almost 100% margin royalties, and an increase in ASICS and phone sales, gross margins will explode. Do not overlook that this company has numerous "hidden" value items that are not necessarily reflected in the share price. OMNITRACKS is a cash cow and growing, especially internationally. Eudora is one of the most popular e-mail programs. WirelessKnowledge, a joint venture with Microsoft will probably be spun off in the next year or two. Globalstar service should launch this year (QCOM has 7% ownership and major equipment supply contracts). CineComm was a total surprise to most of us at the most recent annual meeting, but Dr. J seems to think it has tremendous potential. They have some military contracts, although they are highly classifed and not talked about often. QCOM also has a large R & D budget, allowing them to come out with new surprises fairly often. I agree with Michael Murphy, editor of the California Technology Stock Letter, that R & D is the lifeblood of the high techs and should be added back into net income as it is more of an investment that increases shareholder value than an expense. (Ironically, Michael Murphy did not believe in the Q. I asked him his opinion on QCOM at an investors conference he spoke at a couple of years ago, and he was pretty doubtful about CDMA). The Tornado is coming. It is going to be a Whopper. You are on the beach and can see the funnel cloud. It has already lifted ships out of the water. Do you need to be in the center of the darn thing before believing?

To: Uncle Frank who wrote (994)	4/4/1999 4:01:00 AM
From: JRH	Respond to of 54805

Sounds more like Justin is trying to hijack me <g>. Well, now that we've pretty well conceded it is a Gorilla in Waiting, maybe Justin will let it join its kinfolk in the G&K Portfolio. Ahhh....but I believe that the thread had come to the decision that QCOM was a potential gorilla sometime back and has only recently emerged to be what some consider the real thing. With that, QCOM has been upgraded to THE list! Happy Easter everyone.... Justin

To: Uncle Frank who wrote (994)	4/4/1999 7:14:00 AM
From: gdichaz	Read Replies (1) \| Respond to of 54805

To Uncle Frank: The broadband wireless fiber group are interesting. Nextlink, Teligent, and Winstar. Operating companies so therefore more like the railroads at the turn of the century (1800-1900 that is) than the suppliers of equipment, steel and railroad ties. So more competition and no lock on anything. Service quality wins. Curious if there is any place for these folks in this thread. Best. Chaz too