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

To: cfoe who wrote (2955)	11/4/1999 7:24:00 PM
From: Jenne	Read Replies (1) \| Respond to of 13582

2. $$$ QUALCOMM TARGET RAISED BY DEUTSCHE BANC Deutsche Banc Alex. Brown raised its 12-month price target on wireless phone equipment maker Qualcomm Inc. (QCOM) to $250 from $225 and reiterated a strong buy rating. They are looking for Qualcomm to earn $4.04 up from $3.70 in fiscal 2000 and they raised their fiscal 2001 earnings-per-share estimate to $4.95 from $4.50. COMMENT: Since the price is now $264, I wonder if they are going to look at this prediction again in the next few weeks. Of course, the stock was a $220 stock on Tuesday, so you can't blame them! We like Qualcomm (QCOM) a lot. We added them at $23 in February last year and the return is rivaling the return we had in eBay (1100%), although it took a little longer in QCOM's case! Our target now of $241 has been broken, so we are raising it to $305 a share which is 60 times our estimate for fiscal 2001 earnings. PE's are going higher ladies and gentlemen. The S&P is resting at about 34 times earnings which some feel is a reason for an imminent fall in prices. We don't feel this way. We think that PE's will go higher in the next few years and an S&P 500 PE of 50 is not out of the question by 2002. James Glassman in "Dow 36,000" thinks that 100 PE's are reasonable today. So far, everything that we have said about the markets has come true and we see no reasons why the bull can't continue on into the new millennium.