With the P:E as it is, and without the stellar profit growth which should be happening as the tsunami of 3G arrives, the share price looks about right. It could be $50, but it could reasonably be $30 while shareholders and potential buyers wait to see if the promised profits do arrive as expected, or we get more of the increasing costs, stock options, legal debacles and what have you eating up the income.
Given the booming 3G demand, the share price could reasonably be $82.82, but it's understandable that it isn't.
The great new profit prospects of BREW, FLO, mirasol, Snapdragon, Gobi have either fizzled or are underwhelming. Meanwhile, expenditure booms.
What spectacular new thing is on the horizon, or preferably looming into the present? Nothing really. Firethorn is no big deal. Mirasol seems like the best bet and that's still in the wishful thinking category while we find out what they actually cost to make and the details of in-use operation.
I like femtocells, but the margins on those aren't likely to be phenomenal.
I haven't bought another Tonka Truckload of QCOM so I obviously don't think that it's a bargain basement price at present. Keeping an eye on what we actually do, rather than say is a good guide to what we really think.
Mqurice |
