Qualcomm Inc (QCOM)

[khemara_qc]

Five Picks In Networking And Mobile Devices
07.19.05, 10:21 AM ET

http://www.forbes.com/markets/2005/07/19/cisco-qualcomm-networking-0719markets05.html?partner=yahoot....

SG Cowen highlighted five companies in the networking and mobile-devices arena in its quarterly preview.
"Enterprise benefits from seasonal rebound, while handset market, especially at the low-end, remains stronger-than-expected. Relatively speaking, we view wireless momentum as boosting wireless stock to a greater degree than enterprise going into the third quarter."
The research firm's favorites are Cisco Systems (nasdaq: CSCO - news - people ), Qualcomm (nasdaq: QCOM - news - people ), Brightpoint (nasdaq: CELL - news - people ), Redback Networks (nasdaq: RBAK - news - people ) and 3Com (nasdaq: COMS - news - people ).
"Based on channel checks and our recent U.S. Wireless Retailer survey, we believe the second quarter should be above the consensus 5% to 6% quarter-over-quarter growth, driven by 2G/2.5G GSM strength." The research firm believes new handset launches will continue into the third quarter. "However, continued industry pressure on handset margins as evidenced by third-quarter results recently posted by LG, Samsung and SonyEricsson continues to mute handset enthusiasm long-term."
On the Enterprise side, SG Cowen sees the second quarter in line, recovering from a setback in March. "Although normal seasonality is likely to keep guidance conservative...we have heard that the September quarter is starting out stronger than June."