Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: Tony S. who wrote (2933)	11/3/1999 7:29:00 PM
From: puzzlecraft	Respond to of 13582

Tony, You say "Q reaps royalties ... on each end-user use.... as if M[orotola] got a royalty every time... anyone in the world turned on their PC." This is not the case. Q receives license revenue for the sale of CDMA based equipment, including handsets, but not the usage of the equipment. John

To: Tony S. who wrote (2933)	11/3/1999 8:03:00 PM
From: Catcher	Read Replies (1) \| Respond to of 13582

re long term valuation & q's enviable position. every now & then i set aside all the technical advtgs & lockholds on the rest of the players & wonder whether an old adage might apply in a new fangled environment: that if something seems to good to be true, maybe it is. jealousy, envy and downright anger are surely motivating many a varied & monstrous competitor to break q's apparent stronghold. can q duplicate & then sustain market "dominance" (just kidding judge) the way msft & intc do? is it just me or do others flinch when a headline reads that a csco, intc, lu or even mot are "honing in" on a "new & improved" wireless technology? long and strong q but this "creeps in" when i see q's stock forecast at $1700 5 yrs from now. again--i am long and strong q...without a net--and with a first grade level understanding of the technology. i understand we are betting to the contrary but it could happen that some other gorilla comes up with a better mousetrap next month or next year--right?

To: Tony S. who wrote (2933)	11/3/1999 9:36:00 PM
From: Art Bechhoefer	Respond to of 13582

Tony, there are some parallels with MSFT, but the main difference is that QCOM does not try to exclude others from sharing in the profits. In fact, QCOM seems to have adopted a strategy of maximizing the expansion of the CDMA market, rather than maximizing return on a lower level of investment. This strategy stems from the need to establish enough presence in the market place to make sure that competing systems like GSM eventually work into a CDMA based environment. In terms of valuation, I don't know what model I would use. However, I like to compare certain fundamental measurements of various stocks. For example, if you look at the latest figures, you'll see that QCOM shares trade at around 20 times book value, with a price earnings ratio of about 80 (based on the last 12 months operating earnings), and actual earnings growth around 200 percent. Compare with Coca Cola, which sells at about 20 times book value, a slightly lower PE, and has a growth rate that, hopefully will get back to about 15 percent. Hmmmm. Could Q be grossly undervalued?