of Alan Abelson fame
Actually, the "article" in question was written by Abelson--it was in his "Up and Down Wall Street" column.
if Nokia went into the mid-20s, its P/E would be near 50, and if Qualcomm went to 30, its P/E would be 30.
Since NOK profit growth is not likely to exceed 50% going forward, and QCOM not likely to exceed 30% over next year, these would imply PEG ratios still greater than 1. It is only because of the extreme tech bubble we live in that PEs of 30 or 50 seem cheap.
People ("shorts") used to complain about QCOM's] high PE last year, when it was like 300 or 400 on a trailing basis. That was obviously hogwash to the bulls, who saw a robust year ahead. The market agreed, as the company racked in impressive sequential and annual figures. But here we are now in Annus Robustus....and guess what, Mr. Growth has gone on vacation. Without Growth, the PE floor is really unknowable. |
