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

To: GO*QCOM who wrote (27395)	4/18/1999 8:56:00 PM
From: quidditch	Read Replies (1) \| Respond to of 152472

GOQCOM, Art: What makes G (in which I have a modest position and indirectly hold more through Loral) interesting and challenging as an investment, not to mention prickly for the analysts) is exactly the issue raised by GOQCOM. How do you begin to reach consensus on the assumptions underlying earnings. Is G's service essentially (or, for the first five years) a complementary telecommunications service filling in holes in other wireless and wireline providers' network systems? Does it in effect substitute for an entire wireless/wireline infrastructure in less developed countries/regions of countries (as I think Brian H seemed to suggest)? What is the geographic crazy Quilt in which it performs those functions and what are the demographics and market points of the markets therein? In a developed communications market, such as the US, UK or Germany, what is the equipment functionality that can be wed to other land-based wirless and what are the price points of such equipment and for the G's service? I believe that Q's investment in G is accounted for on the equity method, so that its proportionate share of earnings and losses are taken to pre-tax income--is that right? Regards. Liacos_samui

To: GO*QCOM who wrote (27395)	4/19/1999 3:57:00 PM
From: Art Bechhoefer	Respond to of 152472

GOQCOM, regarding when G begins to show positive cash flow, the 3rd quarter of next year is reasonable, but only if the satellite launches go as planned and the customers materialize. Furthermore, it would appear that what the business plan is talking about is simply that operating revenues will exceed operating costs by that time. You still have to account for debt repayment and other costs. As to the potential market, my own belief is they are UNDERESTIMATING their customers. Think of it this way. Someone in business (or in government as well) might appreciate a phone system that allows communication essentially secure from unauthorized monitoring, even if the cost per minute of use is five to ten times greater than standard digital cellular, assuming service exists where the user happens to be. In my view, Globalstar will be the service of choice for business and government in any location where CDMA service is unavailable or relatively scarce, regardless of extra cost. In the long run, I would be more optimistic than the company. In the short run, I think the stock is more risky than is immediately apparent. Art