Marginmike, I believe the Q is going to have nothing but good Qtrs from now until sometime in 2006, at a minimum. The Q's p/e should command a premium for at least the next 4 years, barring unforeseen new competition. In the long run, if the Q's growth rate is around 40%, compounded annually, a 70 multiple is reasonable today. Problem is, in this kind of environment, it may sell down to 25 times earnings--just buy more. It's my opinion, gut feel, the Q is going to grow a lot under any macro economic scenario. (people want phones)
I truly believe QCOM is one of those rare companies that will sell at premium for a long time, like WalMart, Microsoft, Intel, Cisco, and IBM did in their heyday.
regards,
bt |
