Ira Sohn London: Mala Gaonkar, Managing Director of Lone Pine Capital LLC

Ira Sohn Conference notes Mala Gaonkar

Trade Idea: QUALCOMM, Inc. (NASDAQ:QCOM)

Price Target:

Valuation:

Themes:

Mala Gaonkar on Qualcomm

2/3 of earnings are 3G 4G wireless data voice. 1/3 earnings are chips. Smart phone market doubling in the near term. High end market has a high replacement cycle. Long contract terms and structures. Both standardized and bespoke manufacturer. 2 years on average smartphone replacement. Plenty of growth for mobile internet penetration. Investment in 4G networks leading more demand for company chips and data services. Blended average royalty rates have been stable during the past several years. High viability in revenue stream, strong patent portfolio and competitors are investing less. Has many more patents and developed technology than its peers. Growth of the machine-to-machine internet communication business will drive growth in the data transmission sector. QUALCOMM, Inc. (NASDAQ:QCOM) has 97% of the LTE business. Royalties are 70% of earnings

Catalysts:

QUALCOMM, Inc. (NASDAQ:QCOM)

2.5 billion royalty bearing units

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