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

To: Stu R who wrote (3537)	11/23/1999 9:49:00 PM
From: Lance Bredvold	Read Replies (1) \| Respond to of 13582

Clearly none of those companies, with the possible exception of TLAB, whose business I am unfamiliar with, are comparable with QCOM's business model (even now but particularly after sale of handset manufacturing). Each is primarily a relatively low margin manufacturing or contracting business with a smaller component of intellectual property. Thus they would never be expected to achieve the operating or net margins expected from the Q. That rather proves the point that using a multiple of sales for valuing this company vs others is silly. All you do is obfuscate the significance of Q's higher margins. Why not just calculate what Q's margins will be directly and base value upon what one thinks will be earned over the next years? Lance

To: Stu R who wrote (3537)	11/23/1999 11:10:00 PM
From: marginmike	Read Replies (2) \| Respond to of 13582

He was using Fabless chip modell 60-90 PE and 30 times forward rev

To: Stu R who wrote (3537)	11/24/1999 3:17:00 AM
From: JGoren	Read Replies (1) \| Respond to of 13582

Since you are new to SI and the thread, you should know that Alex Cena has historically been a bull on Qualcomm (long before this year), the one who understood the model the best, and the most accurate of the analysts in his earnings calls.

To: Stu R who wrote (3537)	11/24/1999 6:37:00 AM
From: kech	Read Replies (1) \| Respond to of 13582

Stu R - Cena was referring to DSL type companies as possible comparables to Q. These would be companies with some proprietary IPR and therefore high margins and high growth. Hence they would be similar to Q. I don't follow this market that much anymore about several years ago AWARE, AMATI Pairgain were such companies. Probably it is a different roster.

To: Stu R who wrote (3537)	11/24/1999 8:23:00 AM
From: Art Bechhoefer	Respond to of 13582

Yes, I did misread the information. Thirty times market value would be quite high, and higher than I would want to pay, unless there is something we don't know about the potential market in China. IJ estimates 30 to 40 million cell phones by year 2003, if I recall correctly. That number would almost equal the total number of current CDMA subscribers. That's one heck of an increase if the estimate is accurate.