Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 163.33

-1.0%

Nov 25 3:59 PM EST

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To: Skeeter Bug who wrote (66240)	2/8/2000 2:24:00 AM
From: The Reaper	Read Replies (3) of 152472

Skeet, my man.... I want to get the math right here. Fiscal Year 2000 QCOM earns $800 mill. on $100 Bill. cap. With 50% earnings increase per year for the next 9 years puts QCOM earnings at $30.7 billion for fiscal 2009. With $100 billion in treasury bonds at an interest rate of 6.5% compounded annually ...in Sept. of 2009 you have $188 billion. Stick a PE of 30 on QCOM in Sept of 2009 and your value of QCOM the company is $921 billion. (You will notice a huge decrease in the PE multiple in 2009 for our exercise) What you're saying is that you would rather have your treasury investment in Sept. of 2009 instead of QCOM stock? Are you high? Attach an earnings growth rate of 30% instead of 50% which I amongst almost everyone else think is doable, and your earnings for fiscal year 2009 is just over $11 billion. Attach a PE of 30 to that and the value of QCOM the company is still $330 billion, more than 50% higher than the treasury investment. Throw in tax implications and NO CONTEST! On an earnings yield comparison, which is what this is, QCOM is the clear winner. Now is this correct math or not? kirby

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