The New Qualcomm - a S&P500 company Message Board

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Technology Stocks : The New Qualcomm - a S&P500 company

QCOM 170.58

-0.2%

12:01 PM EST

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To: Stu R who wrote (3537)	11/23/1999 9:49:00 PM
From: Lance Bredvold	Read Replies (1) of 13582

Clearly none of those companies, with the possible exception of TLAB, whose business I am unfamiliar with, are comparable with QCOM's business model (even now but particularly after sale of handset manufacturing). Each is primarily a relatively low margin manufacturing or contracting business with a smaller component of intellectual property. Thus they would never be expected to achieve the operating or net margins expected from the Q. That rather proves the point that using a multiple of sales for valuing this company vs others is silly. All you do is obfuscate the significance of Q's higher margins. Why not just calculate what Q's margins will be directly and base value upon what one thinks will be earned over the next years? Lance

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