In his always fascinating Street Market Authority advice, he explains, “QCOM, the dominant 3G technology and is to exploit the next wave of 3G smartphone presentations combined.”

“Qualcomm sells semiconductor chips and licenses for products based on a technology known as the Code Division Multiple Access (CDMA). CDMA is a 3G mobile phone technology, with the telecommunications services cell membranes. QCOM fleas and components sold in the 3G Mobile phones.

“There are two main competitors standards for the networks of mobile phones: Global System for Mobile communications (GSM) and CDMA. CDMA is higher than the GSM allow high-speed transmission of data makes it easier, a high-speed network of third-generation of data To the CDMA technology.

“Currently, about two-thirds of the 3G networks are still based on the GSM, but that must change in the next few years as a provider of more adopt CDMA, most observers agree that the CDMA technology is the most important in 2010.

“Some major manufacturers are planning the provision of 3G phones in the second half of 2008 on the basis of 3G CDMA technology. The list includes a new advanced BlackBerry to be bold, the new Apple iPhone 3G and combined giant Nokia ( NYSE: NOK) new “Tube” telephone.

“Smartphone users want to buy these new models from the speed of data transmission higher offer of 3G networks.

“Find a wave of 3G smartphone sales in the second half of 2008. In fact, that the May growth is already the case - in mid-June quarter grew QCOM the guidelines, cited the acceleration of sales of 3G mobile phones .

“Qualcomm holds numerous patents essential to the CDMA technology. Therefore, the company you must either buy CDMA chips directly or QCOM license QCOM technology in exchange for a fee.

“QCOM royalty revenue source is very high side. The company usually receives a fee based on the value of the units sold wholesale to the CDMA technology.

“So, QCOM forwarder combined advantages of grants, these grants increase consumer demand for mobile phones, but not the fees will reduce QCOM because its prices are based on the pre-grant large costs.

“This is another big advantage for QCOM; 3G smartphones have been the trend to more expensive equipment, QCOM the increase in charges more than the costs are high in combination.

“Qualcomm is 18 times the profit before line with their forecasts for long-term growth rate of +18%. It is unusual for a growth noted as the name for QCOM in the online trade with its long-term growth.

“QCOM should be a strong second half of 2008 combined new 3G will be introduced and smartphones, the use of conventional mobile phones.

“In addition, because the smartphones are heavily subsidized by transport operators should have little impact of the slowing U.S. economy and the weakening of spending on consumption, because the users were not suspended its acquisition total cost.

“QCOM is also one of the most profitable companies in the technology. The company, with 36% of margins QCOM Top Rank, the same energy technology such as Apple and Microsoft in terms of margins. In this perspective, a solid QCOM” buy “Less than $ 52 per share.