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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: marginmike who wrote (85254)3/25/2001 8:37:46 PM
From: chic_hearne  Read Replies (3) of 436258
 
if a company has 30 billion in Revenues and makes 300 million or a company has revenues of 4 billion and makes 1.5 billion which company would you pay more for if your were buying it?

There is a 3rd choice, buy neither for $44 BILLION and look for a better deal.

It's really an impossible question to answer without knowing book value, which BTW is only $7.38 on QCOM on $3.45 in sales.

IMVHO, if you were unfamiliar with QCOM and looked at their financial statements with the "QCOM" blocked out you would conclude it is a big fat pig. Even if you looked at the ANALyst reports about how much business they will have in the future and believed every word of it, you would still say it was a big fat pig stock and wasn't worth anything close to $44 BILLION. But you're lost in the "story", and a $44 BILLION market cap isn't part of the "story".....
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