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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 177.24-0.8%Oct 30 3:59 PM EDT

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To: cfoe who wrote (13530)8/31/2000 3:06:18 PM
From: llwk7051@aol.com  Read Replies (1) of 13582
 
Michael, I don't take their computations very seriously. They did three assumptions of growth. 20, 25 and 30 percent and used present value tables discounted at 9% to come to current value. For all three methods, they assumed growth of 5% after ten years and discounted that also. I think the discount rate is too high if they are going to use what I consider to be conservative growth rates. The problem with models such as this is nothing grows at a constant rate in real life. In my opinion, we will see another period of hyper growth and then see the growth settle maybe in the 20 to 25% range. However, I don't see slower growth for six to ten years. After that I still expect growth in upper teens. Had they used numbers based on my assumptions the values would change dramatically. Anyway, it is always good to see different opinions. If they are wrong, the major funds will move back into qcom and the price will soar.
Robert
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