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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 159.59-3.9%Nov 20 3:59 PM EST

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To: Ramsey Su who wrote (337)7/28/1999 8:35:00 PM
From: moat  Read Replies (1) of 13582
 
Ramsey wrote:
>>>>>
Lets take $4 as the FY2000 earnings. We are trading at 40 times earning.

Don't you consider that "fully valued"?

Don't forget when I say fully valued, it does not mean QC will no longer increase in value. Just think, if the PE remains at 40 and QC's earnings grow at 30% from FY to FY, the stock price is going to rise by 30% per year (you do the math), year after year, not bad by most standards.
<<<<

The answer to your question is no.

Respectfully Ramsey, may I suggest you read Warren Buffett.

Intrinsic value is defined here (a few pages down under this link):

berkshirehathaway.com

Investors make money by figuring out the difference between intrinsic value and today's stock quote.
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