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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 174.01-0.3%Nov 14 9:30 AM EST

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To: H. Bradley Toland, Jr. who wrote (125904)12/6/2002 2:08:03 PM
From: Stock Farmer  Read Replies (1) of 152472
 
John, do you really think a company throwing off 6 or 7 billion in free cash flow a year will trade at a market cap of 80 billion? Particularly when they will likely have 10 to 15 billion sitting in cash?

Yes.

You are asking whether a company generating $6 in cash flow per share that has $10-$15 per share should trade less than $80

I know of a high-tech company with more than $15 per share in tangible assets, bringing in $4.50/share in cash flow from operations and growing at a healthy clip. If we take the current price and adjust for higher cash flow we get less than $70 per share. Which is less than the $80 per share you think you can get if and when Qualcomm gets there.

Good luck.

John
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