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

To: Harvey Rosenkrantz who wrote (30232)	5/18/1999 9:13:00 AM
From: Ramsey Su	Read Replies (3) \| Respond to of 152472

Harvey, don't be so harsh on WSJ and Hardy. They don't have x-ray vision like you. <g> Ramsey

To: Harvey Rosenkrantz who wrote (30232)	5/18/1999 9:55:00 AM
From: Gregg Powers	Read Replies (8) \| Respond to of 152472

WSJ Article Slime is as slime does. I was interviewed for the story. During the interview I explained concisely and with much detail that Qualcomm's Korean royalties and ASIC sales are a function of BOTH DOMESTIC handset consumption and EXPORT sales, with the latter becoming progressively more important. I pointed out that the domestic Korean market, with its very high CDMA penetration rate, was expected to mature this year in any event. In contrast, Korean EXPORT sales, to markets worldwide, continue to be very robust and this demand will continue to drive Korean royalties and ASIC demand. Moving beyond Korea, I discussed developments in other markets. For example, I pointed out that Japan's CDMA subscriber growth has been dramatic; exceeding 800,000 subscribers in April alone. That would put Japan's April take-rates at or near the peak subscriber rate EVER achieved inside Korea, i.e. Christmas 1997. The WSJ reporter neglected to mention such offsets, and instead chose to publish a sensational, inaccurate and misleading story, suggesting that the current situation has parallels to February of 1998. In my mind, the WSJ reporter deliberately obfuscated the facts. Since I have been hearing the "short story" about Korea for about a week now, I can only assume that the shorts bought themselves a reporter and created themselves a story. Good work boys... I find it profoundly disappointing that the WSJ chose to be so cavalier with its purported analysis. I find it hard to be charitable since I explained the Korean business model to the reporter...so he understood the economics and the relatively inconsequential implications of a domestic slowdown in Korean subscriber growth. Even if he disagreed with my conclusion, he should have offered some balance, i.e. that export sales 'may' mitigate the impact OR that other markets like Japan 'may' pick up the slack. His absolute failure to offer any mitigating comments, other than a token quote from me at the end, suggest pretty clearly that there was an agenda at work here. Finally, it is amusing to see T Rowe Price's Chip Morris quoted in the article. According to Bloomberg's Technimetrics, the Chipper SOLD 99% of his 1.386mm share position in Qualcomm during the DECEMBER quarter....right before the huge run-up. Having cost his clients something around $200mm through his clever analysis, the Chipper now wants to blame Qualcomm management for inadequate disclosure. Chip...can you say "cognitive dissonance"???? This too will pass. All the best everyone, Gregg

To: Harvey Rosenkrantz who wrote (30232)	5/18/1999 11:56:00 AM
From: JGoren	Respond to of 152472

Fact is that the WSJ chose to focus on a bunch of stupid analysts who have to be spoon fed and who didn't believe management when they said the quarter would not drop off. This is bad reporting: rumor among analysts is more real than sales and management. Good that the company immediately issued press release clarifying for the dummies. >>>>> Qualcomm Sees 3rd-Qtr Profit at or Above Estimates San Diego, May 18 (Bloomberg) -- Qualcomm Inc., which developed the second most-used wireless technology, said it expects fiscal third-quarter profit to meet or exceed analysts' estimates on demand for its cell phones and chips that run them. The San Diego-based company is expected to earn 59 cents a share in the quarter ending in June, the average estimate of analysts polled by First Call Corp. Qualcomm said demand for its phones and semiconductors is stronger has increased since the second quarter, as have royalties from companies that use its code-division multiple access wireless technology. Qualcomm shares have more than quadrupled this year as its standard gains customers in new markets including Japan and Brazil. ''The overall wireless market is very robust, and CDMA is the fastest-growing segment,'' said Tim Luke, an analyst at Lehman Brothers Inc., who rates Qualcomm ''strong buy.'' CDMA provides more capacity than competing digital cellular standards and is considered more efficient for data services that let users send and receive e-mail and browse the Internet. In the second quarter ended March 28, profit rose to 41 cents a share, after adjusting for a 2-for-1 stock split last week. Korea, Japan Qualcomm fell 1 9/16 to 107 3/16 in midmorning trading. The Wall Street Journal reported today that the company is facing investor concerns as sales in Korea have fallen after the government ordered local wireless providers to stop subsidizing phone sales starting April 1. Analysts said that although sales in Korea have fallen, Qualcomm is experiencing strong demand from Japan, where two of the country's largest cellular companies recently completed a nationwide network that uses Qualcomm's technology. ''Korea's being offset by Japan,'' said Gregory Geiling, an analyst at J.P. Morgan Securities Inc., who rates Qualcomm ''buy.'' Lehman's Luke estimates the number of CDMA subscribers worldwide will more than double to 52 million this year and rise to 85 million in 2000. ''This subsidy issue in Korea is really a speed bump,'' Luke said.