QCOM 3G China license?
This news post will be removed by someone who doesnt want fellow investors to be fully informed.
How sad when a warrior loses his way to fear and begins to burn books.
Qualcomm jumps on China 3G expectations
Reuters
Tuesday, December 5, 2006; 1:08 PM
SAN FRANCISCO (Reuters) - Qualcomm Inc. (QCOM.O) shares jumped more than 4 percent on Tuesday after China said it may grant a license for a next-generation cellphone network that would boost royalties to the wireless technology and chip supplier.
Qualcomm shares rose $1.61, or 4.3 percent, to $38.99 in early afternoon trade on Nasdaq.
Ed Snyder, an analyst at Charter Equity Research, said news that China may soon roll out its first third-generation telecoms network -- which allows faster Internet speeds and streaming video -- helped push up Qualcomm shares.
He said that the company would benefit both from royalty payments for its so-called CDMA technology the network would be based on as well as from sales of chips used in handsets.
"They are not selling the hardware but they collect royalties on the hardware and they sell the chips that powers the hardware," Snyder said. "They own the property rights to CDMA so when CDMA is deployed they make a lot of money."
Analysts also said the acquisitions of wireless technology businesses Airgo Networks and the Bluetooth operations of RF Microdevices announced on Monday was also lifting Qualcomm stock.
John Lau, an analyst at Jefferies & Company, said the acquisitions give the company a broader range of chip offerings to take advantage of growing adoption of various wireless technologies.
© 2006 Reuters