Qualcomm, Inc. (QCOM)

COOLSTOCK (37.77) Submitted: 5/01/08 6:44 PM : Start Price: $44.52 QCOM Score: 9.88

Both Verizon and AT&T are using QCOM technology to power their broadcast of TV channels on cell phones. Adoption will be slow, given the high price of the phones and the $15/mo fee, particularly in the current weak economic enviornment, but as the economy gets stronger, content is produced specifically for the small screens of cell phones, and the monthly fee comes down, adoption will grow geometrically. QCOM is perfectly poised to benefit from this paradigm shift in what people use their cell phones for, and will collect licensing fees from multiple service providers, not to mention that most of the R&D costs have already been incurred so margins on this business should be very healthy.

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