Follow-up on Investor’sBusiness Daily’s article - “Goal For Qualcomm- Repeat Performance”
Sometimes what isn’t said (written)about a subject is more significant that what is, even if most of what is said is correct. IMO, that’s the case with this article.
1. Most who closely follow this and other QCOM message boards IMO understand that the *only* area of long term growth in mobile wireless handsets / baseband chipsets is within CDMA based technologies.
2. Successful Investing in technology stocks IMO is primarily based on identifying stocks that possess significant long-term growth potential above market averages based upon the underlying metrics of the markets which they serve.
On occasion a good company/ stock without strong growth characteristics can get hammered, become a value play, and provide a good investment return when and if it recovers.
However, IMO identifying growth is primary the key to profitable investing in technology stocks.
IMO, those who invest in technology stocks and fail to grasp the significance of long-term growth in the investing equation are at a significant disadvantage.
3. Investor’sBusiness Daily-
....A. has written extensively on Qualcomm over the years (I was a subscriber for over 3 years) and should be familiar with Qualcomm the company / stock/ and its markets. After all, QCOM is high on IBD rankings list (98 out of 100), and a leader in both the S&P500 and NAZ 100 lists.
....B. Mission should be to provide their readership with meaningful insight into positive investment opportunities and warnings of possible trouble ahead should that be the case. IMO, to those unfamiliar with QCOM, this article rather stating the positive growth opportunities ahead left the impression that Qualcomm’s future may be a “struggle” with these passages .
...B.1...”Qualcomm is king. But as a new generation of phones hits the market, the company may struggle to keep its reign.”
...B.2..”As for Qualcomm's other main revenue source -- chip sales -- WCDMA has made little impact. Carriers are selling WCDMA laptop computer modems that use Qualcomm's chips. But only a few models of phones sold today, mainly from Samsung, have Qualcomm's WCDMA chips. “
...B.3...”The company has vowed an eventual 50% market share in WCDMA chips. That goal will be hard to reach because 15 companies aim to sell WCDMA chips, Thelander says.”
...C...Should understand the significance of long-term growth in the investment equation.
...D. Failed to discuss QCOM’s long-term growth prospects in this article (to my knowledge never has).
....D.1. The article, although mostly accurate, basically discussed only the impact of WCDMA on Qualcomm, giving the impression IMO that it’s “struggle” in WCDMA
...D.1.a. may prevent it from maintaining its market leading position in CDMA (“King”)
...D.1.b. By failing to expand on Davidson’s statement "It's (WCDMA) all upside for us" , the unknowing are left unaware that WDCMA represents an entire new market for Qualcomm, over and above its current market dominating position in 3G CDMA2000.
...the unknowing are totally unaware that for the first time Qualcomm’s addressable market is not limited to only the 25% CDMA “niche”, but has expanded 4 fold to include virtually the entire world of mobile wireless as it attacks the dominate the GSM markets via
.......WCDMA and,
.......the World Phone (GSM/CDMA).
Although some may state “I view the article as very Qualcomm positive, and about as "fair and balanced" as an article of this type could be, and should be. It's a darned good article. “, I feel it came up far short of receiving such accolades.
I submit, that although the IBD article was mostly accurate, it failed miserably in alerting the unknowing investor to the outstanding investment opportunities in QCOM, while IMO leaving the impression of a company with an uncertain future (“the company may struggle to keep its reign”) .
Perhaps the unknowing will have to wait until Feb 2005 to discover the true merits/potential of Qualcomm when Dave Mock’s book (The Qualcomm Equation hits the shelves (George Gilder- “ It makes a powerful case that Qualcomm is the best technology company in the world. “)
AI
