Qualcomm Inc (QCOM)

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Zacks.com Announces That Ian Wyatt Highlights the Following Stocks: Qualcomm, Sprint, Verizon, and Broadcom
Wednesday June 1, 6:00 am ET

http://biz.yahoo.com/bw/050601/15286.html?.v=1

CHICAGO--(BUSINESS WIRE)--June 1, 2005--Ian Wyatt, editor of the Growth Report newsletter, and his team believe that now is the perfect time to begin loading up on Qualcomm (Nasdaq:QCOM - News) for the long-term. Also, read about Sprint (NYSE:FON - News), Verizon (NYSE:VZ - News) and Broadcom (Nasdaq:BRCM - News). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84

Highlights from the May 26th Featured Expert column by Ian Wyatt include:

Timing is Everything

For several months now, Qualcomm's (Nasdaq:QCOM - News) stock was supposed to bounce - investors have been waiting in anticipation.

Though the prediction may still be valid - if not, indeed, likely - the timing will, unfortunately, be delayed. A blend of market forces, legal action, and slow rolling technology have combined to push the wireless giant's long awaited 3G (third generation) led boom farther out into 2005, if not 2006.

Ian Wyatt and his team would argue that now is the perfect time for longer term investors and interested options players to step in and begin loading up on Qualcomm.

The question, again, is one of timing - and specifically timing of 3G. From several different perspectives, the wheels are already in motion for Qualcomm to enjoy 3G's rise in the US and abroad, even if those adoption rates don't mesh with Wall Street's quarterly earnings system.

Companies such as Idetic - which makes MobiTV, television over your phone now being offered by several major carriers including Sprint (NYSE:FON - News) for its Sprint TV - emphasize that innovative applications are moving 3G forward largely because of end-user demand. If subscribers for robust wireless services were happy on 2.5G, they will be ecstatic using 3G, and are now calling for the availability of faster and faster downloads - a demand companies such as Qualcomm would rather heed than leave high margin dollars sitting on the table. In fact, as Scanlan notes, 3G is already happening now in select cities around the US -- with Verizon (NYSE:VZ - News) just beginning its launch, and Sprint offering 3G this summer which will finally enable full motion video for MobiTV, Sprint TV, and others.

Such innovation will not be without further industry conflict, however. Broadband chipmaker, Broadcom (Nasdaq:BRCM - News), recently hit Qualcomm with two patent infringement complaints, suing Qualcomm in U.S. District Court for the Central District of California, seeking unspecified monetary damages and an injunction. Broadcom's legal challenge focuses on new generations of communications chips used to deliver digital media and voice-over-the-Net features to cell phones. The company charges that Qualcomm is infringing on a total of 10 patents, patents that cover multimedia services such as audio, video, and data, as well as communications capabilities. Though the market shrugged it off, the lawsuit became one more reason for delaying bullish interest in Qualcomm.

Not everyone, however, is sitting on the sidelines. Investment firm Piper Jaffray again reiterated its Outperform rating on Qualcomm within the last month, maintaining its $50 price target. As it stated in its analyst report, "with more than 1 billion GSM subscribers on a migration path to CDMA-based technologies over the next decade, we believe Qualcomm could post strong long-term earnings growth." For equity investors possessing a longer time horizon than Wall Street's quarter-by-quarter mentality, Qualcomm absolutely remains a unique and interesting play; with timing as perhaps the only factor left up for grabs.

Read all of Ian Wyatt's commentary on the stocks above by clicking: http://at.zacks.com/?id=85