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No. of Recommendations: 89
I'm surprised no one has looked at QCOM from a RuleBreaker's perspective......

RuleBreaker Analysis: QCOM

1)" The top dog and first-mover in an important, emerging industry... "
Top Dog? Well, it's a Fortune500 company:
http://www.fortune.com/fortune/fortune500/500list2_401.html
And one of the 100 Best companies to work for:
http://www.fortune.com/fortune/bestcompanies/

Well, TMF apparently has something to say about QCOM as well:
http://www.fool.com/portfolios/rulebreaker/1999/rulebreaker991001.htm

.... and First Mover in an important emerging industry:
First Mover in which emerging industry?
CDMA:
http://www.qualcomm.com/cda/technology/display/0,1595,,00.html

HDR:
http://www.qualcomm.com/hdr/about.html

Chipsets:
http://www.qualcomm.com/cdmatechnologies/products/index.html


Digital Cinema:
http://www.qualcomm.com/ProdTech/digitalcinema/index.html

OmniTRACS:
http://www.qualcomm.com/qwbs/omnitracs/system.html
SnapTrack:
http://www.snaptrack.com/news.html

LWIN (QCOM has option to buy 4.5 Million shares of LWIN, and LWIN has a $200 Million line of credit with QCOM):
http://www.leapwireless.com/site/index.html
GSTRF:
http://www.qualcomm.com/globalstar/news/000621ifn.html


2)" Sustainable advantage gained through business momentum, patents, visionary leadership, and/or inept competition... "

Business Mo' ?
Does signing 4 CDMA modem licensing agreements in 4 months count for anything:
http://www.qualcomm.com/cda/pr/view/0,1565,339,00.html
http://www.qualcomm.com/cda/pr/view/0,1565,336,00.html
http://www.qualcomm.com/cda/pr/view/0,1565,325,00.html
http://www.qualcomm.com/cda/pr/view/0,1565,214,00.html

Patents? Did someone say patents?
http://boards.fool.com/Message.asp?id=1220008004264020

Visionary Leadership?
Something about Dr. Jacobs (the older one), and how Qualcomm got its name:
http://www.forbes.com/forbes/00/0110/6501160a.htm


3)" Excellent past share appreciation, measured by a relative strength of 90 or higher..."
1 Year ROI on QCOM is 100%, which means that it still outperforms QQQ.
However, its relative strength in the past 6 months has not been meeting the standard RS of 90. In fact, QCOM has fallen about 67% off of its all time high.
However, at this point I would like to invoke a Rule Maker attribute; QCOM's direction exceeds its location:

- As explained here, Q's current situation has a familiar ring to it:
http://boards.fool.com/Message.asp?id=1220008004060000

And CDMA's potential has remained unchanged:
http://boards.fool.com/Message.asp?id=1220008004047000

4) "Good management and smart backing... "
Management:
Dr. Irwin M. Jacobs - Sounds like someone with a good head on his shoulders.....
http://www.surferess.com/CEO/html/irwin_m__jacobs.html
And yes, this is a bit old:
http://www.americasnetwork.com/issues/97issues/970115/011597_cover.html
But this one is a bit newer:
http://www.ebnonline.com/supplements/special/story/OEG19991217S0030

How about some info on his son?
http://www.qualcomm.com/cda/about/moexecutives_detail/0,1687,35,00.html

Not enough PhD's?
http://www.qualcomm.com/cda/about/moexecutives_detail/0,1687,30,00.html
http://www.qualcomm.com/cda/about/moexecutives_detail/0,1687,39,00.html

And from www.FreeEdgar.com, we find a brief description of Dr. Viterbi, the inventor of a key algorithm used in the design of modems:
"Andrew J. Viterbi, one of the founders of the Company, has served as Vice Chairman of the Board of Directors since it began operations in July 1985. From July 1985 through July 1996 he also served as the Company's Chief Technical Officer. From July 1983 to April 1985, Dr. Viterbi was Senior Vice President and Chief Scientist of M/A-COM. From October 1968 to July 1983, Dr. Viterbi held various executive positions at LINKABIT (M/A-COM LINKABIT after August 1980), a company he co-founded, and served as President of the M/A-COM LINKABIT subsidiary of M/A-COM. During most of his period of service with LINKABIT, he was Vice-Chairman and was at all times a Director. Dr. Viterbi received his B.S. and M.S. degrees in Electrical Engineering from MIT and his Ph.D. degree from the University of Southern California. He is a member of both the National Academy of Engineering and the National Academy of Sciences and is currently a member of the President's Information Technology Advisory Committee. "

Some more info about Dr. Viterbi:
http://www.qualcomm.com/cda/pr/view/0,1565,38,00.html


Smart Backing?
Well, just about every mutual fund out there has a piece of QCOM.
http://biz.yahoo.com/hd/q/qcom.html
I don't know if that qualifies as smart backing, though.

Perhaps some strategic alliances may be better qualified to be considered as smart backing:
Joint Venture with Technicolor:
http://www.qualcomm.com/cda/pr/view/0,1565,332,00.html
Joint Venture with Hitachi:
http://www.qualcomm.com/cda/pr/view/0,1565,308,00.html
Joint Venture with US Sprint:
http://www.qualcomm.com/cda/pr/view/0,1565,297,00.html
Collaboration with Lucent:
http://www.qualcomm.com/cda/pr/view/0,1565,292,00.html
Strategic Alliance with Ryder Systems:
http://www.qualcomm.com/cda/pr/view/0,1565,261,00.html
How about an alliance with Mr. Softie?
http://www.qualcomm.com/cda/pr/view/0,1565,245,00.html
Or maybe you prefer an alliance with RFMD:
http://www.qualcomm.com/cda/pr/view/0,1565,237,00.html


5)" The greater the consumer brand, the better... "
Well, Qualcomm phones are still being sold to the consumer:
http://www.kyocera-wireless.com/thin/index.html
http://www.cellwest.com/html/phones.htm

How about the Palm PDQ?
http://www.mobic.com/news/9910/sprint_and_qualcomm_introduce_ne.htm
http://www.cnn.com/1999/TECH/ptech/12/03/qualcomm.pdq/
http://www.kyocera-wireless.com/pdq/index.html


And, Qualcomm is becoming familiar to consumers through another product:
http://www.attws.com/business/lcorp/explore/plans_phones/pocketnet/faq.shtml

And let's not forget about Eudora:
http://www.eudora.com/kudos

Branding?
Well, add China's Unicom, and Korea's Telson to the growing list of companies world wide that know of the name "Qualcomm."


6) "A significant constituent of the financial media is recently on record for calling it overvalued... "
Well, riddle me this: is there any constituent of the financial media that is on record for calling it **NOT** overvalued? Talk about an endangered species.
Every financial analyst (Wise or un-Wise) have recently been clamouring for the first opportunity to criticize Qualcomm with the same kind of fervor and zeal that was shown back in Nov. 1999, when every analyst was issuing buy recommendations without any hesitations. Q is the ultimate embodiment of the spirit of this bearish media attribute.

http://boards.fool.com/Message.asp?id=1220008004298000
http://boards.fool.com/Message.asp?id=1220008004264001
Even the TMF believes QCOM to be overvalued:
http://boards.fool.com/Message.asp?id=1220008004264000


Conclusion:

CRA a rulebreaker? Nah, it doesn't even satisfy attribute #6. I don't think there's a company out there that currently fits the RuleBreaker bill better than QCOM.



Thx.
cheers,
Albert
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