to all, qcom's market cap is about $100 billion. invest that money in a tbond and you get a guaranteed return of $6.5 BILLION. starting today. that is 3400% more than qcom's current earnings. the interest on this interest is over 50% of qcom's expected earnings this year.
here is the annual breakdown assuming 50% growth at q after the 300% expected this year (round numbers in millions):
Yr /QCOM / Tbill
1 / $700 / $6,500
2 / $1,050 / $13,000
3 / $1,500 / $20,000
4 / $2,250 / $27,000
5 / $3,125 / $34,000
6 / $4,600 / $42,000
7 / $6,900 / $50,000
8 / $10,400 / $59,000
9 / $15,200 / $68,000
10/ $23,000 / $78,000
those are your alternatives. the cost of owning qcom the risk that 50% growth doesn't pan out for 10 years running, the risk that somebody develops better technology (things do change in 10 years, folks) and, even given the 50% growth for 10 years...
you still are down $55 BILLION in cold GUARANTEED cash.
to all the sand bulls that didn't sell at $200 like most of you did: sorry if i removed your head out of the sand long enough to get a sunburn. ;-) |
