Replies to post #18185 on Qualcomm Inc (QCOM)

[Golfinvestor]

Geat post Jeff showing Punk for the fool he was and still is.

[PUNKIN611]

Hi, Jeffie, I still stand by what said about Q and IDCC and narrow and wide band cdma. You know I started posting AFTER Q's monumental fall from what, 150+ to 30 or so. Of course IDCC didn't fair any better, 80+ to 5+. You know I have made money both long and short Q. We or close to the ANSWER one way or the other on IDCC and QCOM. Say what you will, IDCC passes Q in the short run price wise. And if IDCC signs all the same people to 3G contracts as QCOM what will that do to IDCC?? (stock splits ect.) You know what I say is going to pass. PUNKIN611

[stricklybiz]

Jeffrey, LOL! Instead of worrying about Punk's book I'll just buy yours as soon as it comes out, except if what I just read is your book in which case I scored a free book.

Thanks for the update. Dick

[olddog967]

Jeffrey: It is a quiet Sunday and there is no action on the IDCC board. Like you I am only a relatively recent investor in IDCC, starting just about three years ago, with no investment in QCOM. There is no doubt that QCOM is a great company and that is recognized by the investment community. On the other hand, IMO IDCC is still considered a company that is in the process of proving itself.

Regardless of the above, most individuals are in the stock market to make money. While you correctly point out that QCOM has been a better investment from a very long term perspective, the question is how far back do you want to go, and more importantly, what are the current prospects.

In any price/performance comparisons the key is always the starting point. Based on the starting point chosen you can come up with almost any result you want. Keeping that in mind, I reviewed comparative yearly charts (EOM Sep XXXX - EOM Sep 2006) for IDCC and QCOM. The last time the charts showed QCOM performing better than IDCC was for the period starting Sep 1998. From Sep 1999 onward, the charts showed IDCC currently besting QCOM. Your own experience buying IDCC two years ago supports this, with IDCC up approximately 80% since then and QCOM down approx 20%.

What I am trying to say is that comparing IDCC’s and QCOM’s past stock market prices, is a fools game. An investor should be concerned with what are the future possibilities. As you say, QCOM “has 1.6 billion shares, a market cap of $60 bil, pays a dividend, has licensed everyone for 3G, and has hordes of cash, growing revenues and profits, and generates great free cash flow.” IDCC on the other hand has “51+ mil shares are now worth a total of approximately $1.75 bil”. IMO, QCOM is now in the category of a long term growth blue chip which should result in slow but steady price appreciation. IDCC however, would be classified as a speculative investment with the possibility of substantial price appreciation, if their licensing potential is realized. Without denigrating either company, investors should decide which is a better investment based on their own outlook .


BTW your comments regarding PUNKIN were interesting. It seems every board has a least one negative poster who likes to play as the devil's advocate.