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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: R. Ramesh who wrote (32437)	6/17/1999 12:52:00 AM
From: Jon Koplik	Respond to of 152472

Hi. Last quarter, QCOM management said that if all of the extraneous, one-time, wacko stuff were stripped out of their earnings calculations, then earnings would have been 60 cents for that quarter (this is adjusting for the recent stock split) (Back then, they said $1.20). This quarter, Qualcomm has already said earnings should be good. My analysis -- choose a random number somewhat higher than 60 cents per quarter. I choose 75 cents. That's $3.00 per year. Two days ago, QCOM was almost as low as $100 a share. That's about 33 times my (somewhat randomly derived) earnings number. I think the PE ratio for the entire S&P 500 is now somewhere around 30 or so. Qualcomm is unquestionably one of the most promising companies in the U.S. right now. If its PE is even remotely close to that of the S&P, do not worry about QCOM being "pricey." Jon.