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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: hueyone who wrote (46055)	9/1/2001 12:43:44 AM
From: techreports	Read Replies (2) of 54805

When QCOM hit $200 per share on Jan 3, 2000 it was selling at 645 times trailing GAAP earnings of 31 cents per share, had a price to free cash flow ratio of 64,516 and had a price to sales ratio of 33 on revenues of nearly four billion dollars. The ratios are all based on the most recently reported year end at the time---9/30/99. When QCOM hit 200 it was because investors thought Qualcomm would rule the world (it still may) but investors were already pricing that into Qualcomm's stock. Estimates like QCOM would have 90% of the market by 2008, ect.. JDSU was worth over 120 billion. JNPR over 78 billion, ect.. Lost momo players, delayed China news, delayed Nokia license news, etcetera were just near term facilitators in its manifest destiny for lower prices. Those were some of the reasons the stock fell, but another reason IMO was because it had no where else to go. The market was already pricing it like it was going to dominate the world. NOK was trading like it was a certainty that they'd get 40% market share and be selling 800 million of the 2 billion cell phones that they predicted would be selling in 2008. Qualcomm still seems expensive, then again i'm a novice when it comes to valuations. Price to sales of 20.. valuepro.net type in qcom.

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