Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 166.85

-0.7%

10:38 AM EST

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To: Jim Willie CB who wrote (44084)	10/11/1999 2:41:00 PM
From: 16yearcycle	Read Replies (1) of 152472

FWIW, i think we are simply getting a pe expansion which is richly deserved. Some of you 1+ year shareholders probably hate this kind of talk, after suffering through UNBELIEVABLY absurd pe's last year and the years before. But the fact is that a company like this deserves a premium pe to it's growth rate, and that pe should then be applied to forward earnings once management has: 1.) shown the ability to manage earnings expectations well, and 2.) the earnings are predictable well in advance(several quarters). If we apply a 60x pe, a slight premium to the 50% growth rate expected, to next years earnings, we get a price around 300 now. I don't think that management has thoroughly proven YET that it can control and beat expectations, but when it does, I believe it will warrant a premium like this which we would only have dreamed about 6 months ago, let alone 1 year ago.

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