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Mindy- Thanks for your informative posts. Your effort is appreciated.
genedabber
Add my thanks to each and to all contributors who make extra effort to contribute to the dialog.
Gene
"The U.S. Court of Appeals for the Federal Circuit said it did not have jurisdiction to consider Qualcomm's request, because the import limits are still under review by the Bush administration. The administration has until August 6 to decide whether to veto the import limits.(AP)"
Why didn't QCOM's lawyers know this point and not filed the Appeal until after the Veto decision. Another case of bad publicity today that could (should) have been avoided. Has there been any statement from the Q re this?
Gene
Thanks D.R. for the last three posts of QCOM's recent briefings. The summation of all three is very inclusive and timely.
Gene
"IMO it's time for the U.S. government to take some action"
Don't hold your breath! This administration does not have a record of doing anything that is beneficial to Qualcomm.
"very nice news for Q"
Why is this the case? It is not obviouse from a read of the article.
Gene
Ricardo,
Looks like we are neighbors! By taking this issue to arbitration, does that now mean that the question of WCDMA royalties from Nokia, with all its implications, will be decided here? What kind of appeal process is available for whoever "loses" an arbitration case?
Of course this coould all be negated by an agreement between Nokia and Qualcomm!
It appears that Nokia may not have anticipated Qualcomm's response to immediately seeking arbitration. Unless Qualcomm anticipatd Nokia's action, which it appears to me to be unlikely, it is impressive that their legal team responded so quickly with the arbitration clause.
My moniker is derived from where I jog - Del Mar, CA.
Can Qualcomm force Nokia to acccept arbitration, or can they just refuse to arbitrate? At this point I don't see why Nokia would arbitrate, and don't understand how they would be required to do so.
Gene
I disagree with your and Williard's comments re PJ. The current legal problems stemming from the Nokia license, as well as the POS challenges, were not a result of Paul's management. OTOH, the continued success of BREW; the development of future technologies; the recent acquisitions; and other examples of his insights and vision of the future attest to his potential. as well as QCOM's.
It was a nice day for jogging in delmar. Thanks for your response.
The China situation appears to me to be next in importance to the legal challenges to Q's stock price, since any upside has not been included in their earnings forecasts.
Whenever China rolls out their 3 G licenses, the element that will effect QCOM's share price the most has not been mentioned. The agreement on royalty rates, and specifically the Chinese position on royalties to QCOM for TDS-CDMA systems, will effect QCOM in many ways, including their legal fights with NOKIA and in the European Union.
For example if they get what is considered favorable terms in China, their cases will be much strengthened, and conversely if they do not. The absesnce of any dialog or comment is surprising and worrisome. Does anyone have opinions/facts in regard to this?
Gene
There was no Qualcomm stock buyback and Put selling during the last quarter. I think this somewhat revealing since there appears to be no reason other than lack of belief that the stick will go up in the near term. To augment this thought, note that Cash Flow has improved and cash reserves are at a high, yet how these funds would be used was not mentioned.
Gene
Looks like more piling on. Interesting that Qualcomm is the source of the information.
Reuters
Qualcomm investigated by South Korea antitrust agency
Tuesday April 4, 10:35 pm ET
SEOUL (Reuters) - South Korea's antitrust watchdog, the Fair Trade Commission, is investigating U.S. wireless technology company Qualcomm Inc. (NasdaqNM:QCOM - News), a senior official at Qualcomm Korea said on Wednesday.
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A spokesman at the Fair Trade Commission declined to comment, but Yonhap News cited industry sources as saying the probe was examining whether Qualcomm had breached antitrust rules using its dominant market position in South Korea.
"The (FTC) officials recently visited our office for an investigation," said the Qualcomm official by telephone. "We don't know what this investigation is about, but we're cooperating."
Qualcomm dominates the market for technology and chips for code division multiple access (CDMA), the world's second-most common mobile phone technology after global system for mobile communications (GSM).
South Korea is home to leading mobile phone makers including the world's third-biggest, Samsung Electronics Co. Ltd. (KSE:005930.KS - News), and fourth-ranked LG Electronics Inc. (KSE:066570.KS - News).
South Korean mobile service employs only the CDMA technology, but Samsung and LG Electronics make GSM phones for export.
Samsung is currently developing a high-speed Internet mobile phone using Qualcomm's modem chips for Vodafone Group Plc (London:VOD.L - News). Qualcomm also picked Samsung last year for a contract chip deal for mobile phones.
South Korea, which fined Microsoft Corp. (NasdaqNM:MSFT - News) for antitrust violations in December, is also investigating marketing practices used by Intel Corp. (NasdaqNM:INTC - News).
Jim,
Can you or anyone comment on this article today in Forbes? Loopks like it explains the poor performance the pst few days, but the question is "why?"
http://www.forbes.com/investmentnewsletters/2005/03/29/cz_mr_0329gurupicks_inl.html?partner=yahoo&am...
Gurus Guzzle Oil And Dump Qualcomm
Matt Rand; data provided by Marketocracy, 03.29.05, 10:45 AM ET
NEW YORK - Oil and gas giant Exxon Mobil is up nearly 16% in 2005, to $58.89, though it's down from highs earlier this month near $65. The company, with a whopping market capitalization of $377 billion, is in the top 3% of the holdings of the best 100 investors at Marketocracy, thanks to aggressive buying over the last two weeks. The gurus added 17% to their holdings of the stock in the $62 range. Despite its February surge of nearly 30% in price, it's hard to make a case for an Exxon bubble when the company still trades at 15 times trailing earnings.
Click here to download "Oil & Gas: Slam Dunk Investing For Income And Capital Gains"--a special report from Professional Timing Service.
Houston, Tex.-based Mission Resources (nasdaq: MSSN - news - people ) is less than one-thousandth the size of Exxon Mobil (nyse: XOM - news - people ), with a market cap of about $295 million. Net income for 2004 was up 24.6%, to $2.9 million. But the company is highly leveraged with a debt-to-equity ratio of 1.51, and it has just under $6 million in cash on hand. At the end of 2003, the company had $27.1 million in cash. With oil prices high or rising, that leverage has been working in Mission's favor, though a pullback in crude would no doubt be a blow to this independent exploration-and-production outfit.
Frequently creatures of momentum, the M100 added 510% to their holdings of Mission, buying near $7 on March 15 and March 16. A year ago, the stock was at $3. While the stock price has outpaced the company's performance, analysts are expecting 48 cents per share of earnings for 2005 (compared with 11 cents per share in 2004), which gives the stock a forward price-to-earnings ratio of 14.6.
Special Offer: Marketocracy's Marketscope, the journal of its best-performing 100 investors, has more than tripled the return of the S&P 500 since its inception. Right now the M100 are still buying energy stocks. Click here for the full list of current buys, including several in health care.
They also bought Puerto Rican regional bank Doral Financial (nyse: DRL - news - people ) on March 17 and March 22. The company fell into a three-day tailspin on March 16, following a downgrade from a Wachovia Capital Markets analyst, who pointed out "aggressive assumptions" in the company's annual report, released the day before. The stock closed at $38.29 on March 15, falling 43.8% to $21.50 by the end of the week. On Monday, March 21, following the nosedive, Wachovia's analyst reversed his opinion and upgraded Doral back to "market perform." Gurus, who added 142% to their holdings of the stock in their recent buying spree, started to buy on the way down, and then bought more at the bottom. It's now in the top 11% of M100 portfolios. The stock, which closed at $22.14 on Monday, March 28, trades for 5.5 times earnings and 1.7 times book value.
The gurus, however, didn't view the recent downturn in San Diego, Calif. wireless titan Qualcomm (nasdaq: QCOM - news - people ) as a buying opportunity. The M100 was most heavily invested in the company in the first half of December, as Qualcomm was approaching its 52-week high of nearly $45. But they've been selling since then. The stock is 19.6% off that high now, trading at $36.19, and gurus sold out of their holdings entirely last week. While the company has no debt, it trades at about 10 times its cash level and 33.4 times its last 12 months of earnings.
Special Offer: Forbes Wireless Stock Watch editor Nikhil Hutheesing has both large companies like Qualcomm in his model portfolio and small ones like Jamdat Mobile. Last fall he bought Smith Micro Software at $3.67 and took profits at $8 per share just two months later. Click here for his April buys.
The M100 also dumped shares of City of Industry, Calif.-based teen clothing retailer Hot Topic (nasdaq: HOTT - news - people ). But they sold Hot Topic shares at a healthy short-term gain of nearly 40%, after buying in early December. Gurus sold ahead of the company's fourth-quarter earnings announcement on March 16. That turned out to be a smart time to get out, as the stock now trades at $21.10, which is 6.5% lower than it closed on March 16.
Guru Buys:
Exxon Mobile (nyse: XOM - news - people )
Mission Resources (nasdaq: MSSN - news - people )
Doral Financial (nyse: DRL - news - people )
Guru Sells:
Qualcomm (nasdaq: QCOM - news - people )
Hot Topic (nasdaq: HOTT - news - people )
VOIP applications to HSDPA
Does HSDPA deployments enhance VOIP? Since QCOM appears to be in the lead in development of HSDPA chips, early deployuments whould benefit their chip base. My question is "is this consistent with assessments that VOIP applications are still the driver of future 3G?"
It is my assumption that in the year end balancing of holdings by various Mutual Funds and QQQQ, QCOM shares held by many of these has to be reduced by year end. This is based on the fact that the stock price has risen so much this year (up from $26.50 to current price) that keeping the same ratio of QCOM requires fewer shares that at the beginning of the year. Even if the ratio is changed to reflect QCOM's performance, it is probable that fewer shares are required now by QQQQ, et al than before.
Is this correct?
Gene
Rich, In a previous post, you requested that Eric and Jim and everyone else to refrain from personal "political overtones", i.e., your comment: "That said, your message is suspect when you interject political overtones such as 'I won't even comment on how close he is - or is not - to Boom-Boom Issa, a man who I consider to be a national disgrace'. For the boards sake, please (both Jim and Eric) keep your arguments to the facts and avoid personal bias as much as possible".
Yet you do the same, or worse, in the below quote from your most recent post, i.e. " Don't know the man, don't know anything about him and don't care to. (However, if he is a pain in Biden's butt, then he can't be all bad <ggg>).
Jim, or anyone
In the India Press Conference yesterday, Irwin Jacobs now publically states that he anticipates 12 M new handsets in India this year. I asssume this will be reflected in forward looking info to be supplied at the time of the Quarterly Report.
Do you recall how many India handsets were in the planning numbers for 2004 in the Qualcomm model at the time of the projection for 2004?
lotthigh
Jim,
Thanks for your research, the depth of your posts, and your posting on more than one thread. Your posts contribute a lot to keeping these threads informative and interesting!
I would like to go on record by stating that D.R.'s daily posts are the meat of this board. Most of us would miss it a lot. D.R.'s work in providing this information early each day is highly appreciated!!
Genedabber
I'm here also. Look forward to posting.
delmarjogger
I'm here also. Look forward to posting.
delmarjogger