CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST! Message Board

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Technology Stocks : CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST!

QCOM 174.69

0.0%

Dec 24 12:59 PM EST

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To: ED PLOPA who wrote (1353)	12/26/1996 6:07:00 PM
From: uu	of 1819

Ed: > Your response was that QCOM would never amount to much > because of bad morale, that's a good point but IMHO it doesn't > reduce QCOM to a pile of rubble, I think that they would be able to > live on their royalties alone. Thanks for your response. However I would like to clarify something. I never intended to say that QCOM will never amount to anything. All I was trying to say was that in my humble opinion QCOM is extremly overvalued at this time (i.e. the stock is a bit ahead of its time), and therefore the slightest bad news will result in severe volatility. A lot of small investors have been pushed into believing and expecting too much from this company. Misleading statements such as QCOM is the next MSFT certainly adds to those expectations. In the words of Alan Greenspan QCOM is an excellent example of 'irrational exuberance' in stock valuations. I am neither against nore for investing in QCOM since I personally have no position in this company. I have just been following the company for about a year now (at a friends recommendation to BUY ). Despite the great CDMA technology, however the more I look at the fundamentals of the company and from what I hear from inside the company I can not bring myself to buy the stock (neither short term nor long term). For my money I can find plenty of other valued and undervalued companies in the tech. sector. An analogy can be used: consider a mansion in Beverly hiils whose fair market value is 1 million $. Lets say the owner sells the mansion for $2 million. Now, would you be willing to pay $10 million for a mansion whose fair value is $1 million which was sold for $2 million to the guy who is now trying to sell the same mansion to you for $10 million?! To me, and again with all do respect, QCOM at $40/shr is just like that $1 million mansion trying to be sold at $10 million. Regards, - Addi Jamshidi

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