Friday, July 07, 2000

Quaaaaaaalcommmmmmm!!!!

No that's not the call of praise, that's what the company sounds like falling off a cliff. So what happened to Qualcomm? Suddenly it's not worth the paper the certificates are printed on. The so called King of wireless looks more like king of peasants. Korea is reported to be choosing a rivals CDMA technology, China's biggest telecom is delaying the use of CDMA, & Brazil may be going to GSM. This isn't the way it was supposed to happen. CDMA is the best? Isn't it? Remember, the best doesn't always win. Just ask Sony or Xerox. No longer does it look like QCOM will take the world by storm and garner 80% of the market tomorrow. Suddenly the company needs to go through the growing pains every other company goes through to deserve a high market cap and multiple. I told you!!!!! Nah, nah, nah, nah, nah!!!! Had to get that out to all those investor who called me stupid when I told them at 200, even 150 that QCOM will crash, and crash hard. These investors were telling me that QCOM was worth every penny at 200, and that the stock would triple from there. It was the next Microsoft or Cisco. Hello, anyone home? At it's high's the stock was trading at a market cap of $150 Billion. Yes, Billion. That was 1/2 of MSFT and 1/3 of CSCO market cap. Are you kidding me? Those stocks took over a decade to reach those market caps, and have steady revenues and earnings to back it up. Enough, my blood pressure is rising over how much money these individuals lost. If you plan on holding on to those shares, good luck. But I think it'll be several years before you see your investment back. What lesson should we learn from this? Learn to recognize when the stocks price no longer reflects the reasonable value of a company. At that point trade it accordingly. But don't make excuses for why you should hold as it starts to fall of the cliff.
If you have to remember anything, remember the following:
Cut you losses short. Let your winners run, not your losers.
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