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


To: codawg who wrote (48681)11/9/1999 9:14:00 PM
From: Skeeter Bug  Respond to of 152472
 
cd, when investing in stocks, it is eps that matter. growing net earnings while reducing eps is BAD for the shareholders.

msft earned $0.40 in 9/99. they earned $0.40 in the prior q. that is flat q as far as stock ownership is concerned.

q1 to q1-1y, msft grew eps at less than 29% yoy ($0.31 to $0.40) - and i understand they emptied out their little fund they goose up during the good times to even get the $0.40.

during 1998 they grew eps 69%
during 1997 they grew eps 27%
during 1996 they grew eps 54%
during 1995 they grew eps 48%
during 1994 they grew eps 21%

you do have a point, though. this year isn't msft's worst. it is just about 55% less growth than their best year of the few i've mentioned. the fact the pe is higher now than when growth was over twice ehat it is most recently... well...

we'll call that asset inflation. paying more to get less.