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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (5248)	8/24/1999 8:42:00 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 54805

Mike, Using those assumptions, the PE is about two times the estimated, annualized earnings growth. I think you are saying this with reference to QCOM's trailing EPS of $2.05, vs. your 2000 EPS estimate of $5. According to my calculator, that's almost 150% EPS growth. Using 150 as the denominator, and the trailing 90 P/E as the numerator, we have a PEG ratio of 0.6, not 2.0. Am I missing something? In any case, since the EPS growth has been so rapid (wasn't just the 75-cent version of last Q's profits like a 455% increase or something YOY?), I'm looking more at the sequential QOQ (quarterly) growth of pro forma EPS. We had 43% last quarter (60 to 86 cents); what will the next one bring? A year of 20%+ QOQ EPS growth would be a slam dunk in my book (and get you $6.64 for 2000 EPS). Is that possible? I dunno. Michael on the Q thread said he thought they'd manage earnings to come out around that level (20% QOQ EPS growth). Perhaps that is insanely high (that would put 2000 Q3 EPS at $1.78!), but if profits are growing rapidly, there may be some form of "flow control". JMHO, Greg