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

To: T L Comiskey who wrote (28797)	4/30/1999 12:36:00 PM
From: Caxton Rhodes	Read Replies (3) \| Respond to of 152472

Investtools: New Buy Recommendation on Qualcomm (QCOM) Tuesday, April 27, 1999 For awhile, growth stock investor Carlton Lutts joined the chorus of those advising caution in today's market. But his indicators picked up on a string of strong earnings announcements and flashed a buy signal on April 22. He immediately issued buy recommendations on six stocks new to his portfolio and reissued buy signals on six other stocks he currently holds. One of Lutts' new picks is Qualcomm (QCOM), who makes and markets advanced communication systems and products based on their proprietary digital wireless technology. Shares in Qualcomm have grown more than 100% so far this year. Analysts attribute this to growing profitability throughout the firm and the settlement of a lawsuit with Ericsson. This settlement makes Qualcomm the top licensor of CDMA (code-division multiple access) technology. “Motorola and Nokia already make CDMA phones, and now Ericsson will climb on board, officially making this the new third generation (3G) wireless standard,” Lutts says. Sales rose 20% in the last quarter to $941 million and earnings grew 30% to $0.65 per share. Analysts expect operating earnings to grow by roughly 40% this year. Gross margins are predicted to widen as phone handset sales are on the rise. Management is also stressing profitability in all divisions and the firm spun-off Qualcomm's Latin American wireless operators, a move which should minimize expenses related to the firm's investments in those operators. For more on Carlton Lutts' recommendation see “Momentum Analysis,” April 15, 1999, The Cabot Market Letter. Growth stock investor Carlton Lutts uses fundamental analysis and looks for upward market trends and positive stock momentum to identify tomorrow's superstars before their share prices soar. member.investools.com For a 30-day free trial go to: investools.com Join the discussion: The Cabot Market Letter investools.com