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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 163.32+2.3%Nov 21 9:30 AM EST

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To: Wyätt Gwyön who wrote (29489)5/8/1999 11:29:00 AM
From: Mike Buckley  Read Replies (2) of 152472
 
G. Moore,

Do you think the consensus is just being timid, or are those analysts not really on top of some potential profit growth?

You asked that of michael piturro. I'll jump in here if neither of you mind. I'll be interested in Mp's response.

I very strongly believe the analysts are playing a game of upping the estimates sufficiently to show strong growth but not so sufficiently to show the realistic possibilities. To do the latter would mean putting their neck on the line, especially if something goes unexpectedly wrong in the next few quarters.

To more specifically answer your question, no, the analysts aren't being timid; instead, they're being prudent. Yes, they really do understand the fundamental growth potential. The information in the latest earnings report makes it impossible for them not to appreciate the implications.

My opinion.

--Mike Buckley
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