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I am an investment advisor, and one of the first to recommend QCOM (as early as February, 1992). Several aspects of the company that are important to any earnings assessment do not appear in these messages. First, almost all the messages deal with digital cellular activities, when QCOM has many other profit centers. Second, the focus on problems in Asia seems out of proportion to the rapid growth elsewhere, particularly in areas where wireless local loops are being installed. Third, recent product announcements, particularly in conjunction with the cellular telecommunications conference in Atlanta this week, indicate that QCOM is now able to supply CDMA equipment capable of replacing certain wired equipment (e.g., wireless pay phones at sports events, etc.). Finally, based solely on fundamental analysis and average growth rates over the past three years, there is no reason why a price-earnings ratio of 60 would not be reasonable. On that basis, the stock could easily move to a level above $90 from its present $50, making it one of the best buys in the entire tech sector. Incidentally, I run the oldest online investment service, the Independent Investors Forum, begun in 1981. |
