Does the report factor in other types of wireless revenue (data, video, etc.), how Q* will invest its massive cash flow?, its investment and royalties from Globalstar?
Yeah, "Other" accounted for $30 of that target price. By some wierd, strange coincidence it brought the target price up to exactly $1000.
I'm very long Qualcomm, but I'm less long than I was yesterday morning. That Paine Webber report was, IMO, a travesty. Not so much for the content as for the way it was done. All of the information in that report has been known for a while. Heck, the information in that report is what drove the stock price from $30 to $460. This analyst missed all that, and had to make a big splash when he finally initiated coverage. He needed a $1000 target price, and he did what it took to get one.
Like lkj, I'm sorry to let a piece of my investment go. It could end up costing me a lot over the years. However, I believe that the analyst who wrote the report is a fool, and I know that the people driving up the stock price in its aftermath are fools. We'll see how it all turns out in the long run, but in the short run I'll sleep better after taking some profits. |
