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

To: Keith Feral who wrote (37823)	8/8/1999 12:12:00 PM
From: Boplicity	Respond to of 152472

re: In short, the washout in AOL and the other internet stock is immaterial to the Q's direction. In the long run your correct about that. But for the next few months, unless the I-Nuts have bottom which I do not think they have, the high-tech market will be affected by their drop, which in-turn will cause the rest of the market to be under pressure. As far as using AOL, it's a change in the AOL story I was using to make my point. I'll use a different stock, DELL. It's growing between 40% and 50% still, but the stock is going nowhere. Most companies would kill for that growth. DELL has to grow into it's PE now. It's investor perception that moves a stock, investors perceive the DELL story as having run it's course, which by the way I feel is misplaced, so DELL is dead money. The same could very well happen to QCOM at one point. Revenue still pouring into the company, but priced into the stock. QCOM stock appreciation will slow or stop and QCOM will become dead money. But it's the near term that I'm commenting on, the next two to three months where I believe QCOM will drop down from here. Greg

To: Keith Feral who wrote (37823)	8/8/1999 5:07:00 PM
From: JGoren	Respond to of 152472

AOL and Qcom are not alike for the reasons you gave. Even if the market corrects, Qcom won't be immune but if its earning growth continues, it won't get hurt as badly as others. Let's make it simple: $5/share FY2000, a billion dollars in the bank, and a government-issued monopoly (patents) on the fastest growing technology in the fast-growing telecom (wireless) biz. Real earnings and every prospect of growth. When I look a tech stocks that have, and are, doing well, I don't see EPS at the level Qcom has achieved in a short period of time. I don't disagree that the stock price could remain flat for another quarter. The stock needs to digest the unprecedented runup since February. Higher earnings will result in an adjustment upwards eventually. For most of us, we just hold or buy some more on dips. We can't time the market, and we can't time re-entry; besides the taxes would kill us.