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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 171.54+0.4%3:59 PM EST

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To: ratan lal who wrote (91081)1/5/2001 7:13:34 PM
From: firstflight  Read Replies (1) of 152472
 
Isn't the theory that a stock is worth the current discounted value of its future earnings stream? But unless the company is unlikely to be around after 2 years, why cut the earnings off at that point. It seems to me Cisco is likely to be around a long time, but the size of the future earnings stream is hard to figure, not that it obviously won't be higher than todays. Who would be willing to sell there shares for twice current earnings in any company, unless that company was about to go under permanently? Can you find any companies that are attractive on this valuation basis?
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