Ramsey or Allen:
Here's a question for both of you? If the market is pounding high PE stocks (as I believe it is doing, and continues to do, ever since COMS pre-announced poor earnings over adapter cards), why is WIND getting pounded and QCOM hold up remarkably? According to Ramsey's view, all high PE stocks should be getting crushed, but this is clearly not the case with QCOM.
WIND's PE is 55
QCOM's PE is 212
My own theory is that the market is pounding high PE stocks with significant multiples to earnings as well as revenues, such as ASND, WIND, CSCO, SHVA. But for some reason, it believes in the future revenues and consequently earnings of QCOM. In other words, the E of QCOM is severly understated, whereas the E of WIND is fair or rich. This is just my theory, but time will tell.
What do you think?
Regards,
Jason Cogan |
