Metricom again? John, this is the Qualcomm thread.
A quotation apropos of MCOM:
"Leaving the question of price aside, the best business to own is one
that over an extended period can employ large amounts of
incremental capital at very high rates of return. The worst business
to own is one that must, or will, do the opposite--that is, consistently
employ ever-greater amounts of capital at very low rates of return.
Unfortunately, the first type of business is very hard to find..."
The greatest investor of this century, Warren Buffett in the 1992
Annual Report to Shareholders.
Now, most of us believe that the mighty Q falls into the first group.
And despite the fact that a large number of wise people have dumped an
obscene amount of capital down the MCOM rathole, it still remains
firmly lodged in the second group.
Q is profitable. Q has a very, very large value chain. MCOM is piling
on debt in a rising interest rate environment, this can not be healthy.
Perhaps you have gotten confused about earnings and sales, MCOM has small
sales and NO earnings, Qcom has large sales and monopoly earnings.
MCOM has a P/S ratio of 100, QCOM has a P/E ratio of 100, big difference.
We may be rich, but we ain't stupid. Stop touting MCOM here.
Paul |
