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

To: cfoe who wrote (37924)	8/11/1999 8:24:00 PM
From: gdichaz	Respond to of 152472

cfoent: PE's are not much of a guide used by themselves. For example, using Cisco's latest earnings of 21 cents and Cisco's price at today's close, and figuring the same way as the Q's 86 cents pro forma, then the derived Cisco PE is around 75. Will the Q outperform Cisco in the next 3 to 5 years? Taking all the fundamentals of both into consideration, the Q would seem likely to do better - IMO considerably better. But that is just IMO. No one knows. And PE's are a pretty weak reed on which to base a judgement. Your main point is valid - that as the Q builds its earnings track record over the next few quarters, the Q will probably move toward a higher PE - perhaps more in line with Cisco. But wouldn't hang my hat on that alone. Cisco has had years of consistent outstanding performance after all. Both are gorillas in their fields. Cisco is a silverback, the Q newer to the gorilla category. Cheers. Chaz