Qualcomm Moderated Thread - please read rules before posting Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 175.11

+0.5%

1:44 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mr. Sunshine who wrote (28800)	11/13/2002 10:28:33 AM
From: RalphCramden	Read Replies (2) of 197016

A dividend seems to be an acknowledgment that this is not longer a hot growth company. I am pretty concerned that it is not a growth company anymore anyway, just based on the trajectory of this company and this industry over the last 15 years. The problem with QCOM not being a hot growth company is that a 35 PE is not justified for a company which is growing less than 35%/year or so. For years, QCOM has told us that the smartest thing they can do with their money was to invest it in their business. If now they tell us that they don't need any more money for new investments, they are telling us that they have entered the next stage in their lives. And that stage will not be associated with 35% growth, which means the stock price will go down. (Or stay flat while slow earnings growth chips away at the PE over a few years.) Further, a dividend as compared to a stock buyback is a very good indication that the stock is overvalued. Even QCOM thinks it is too expensive to buy back. IMHO, Ralph

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next