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

To: JGoren who wrote (3545)	11/24/1999 10:31:00 AM
From: Stu R	Read Replies (3) \| Respond to of 13582

Since I am a new poster on SI I suppose it would be appropriate to disclose that I have been lurqing on the Q related threads since early this year (I seem to remember the 10,000 post landmark being hit). I have read all the posts and am familiar with all the characters, the drama and the vocabulary. I have a financial background and have been studying the market for 20 years. I have been drawn to these threads because of the high level of thinking and analysis that is created here. In particular, I have received a crash course in high technology at no charge which I have found to be extremely rewarding. I have profound respect for all who contribute positively on these threads and hope I can add something to the mix. I have a copy of Cena's 45 page report on Q which I have reviewed and think is a great piece of work. I also have read his updates. I also view his analysis as being among the best available to us. I jumped into the discussion as to whether his target price should be calculated using diluted or undiluted shares, by saying I think it is irrelevant because: A)target prices serve little purpose but to indicate the degree of bullishness the analyst may have B)the method for arriving at his target price is not an appropriate method for valuing a company (price/sales)and in my view was used by him as a very rough means to establish a number that is probably not possible to calculate. With that I was able to draw out a concise explanation from Lance as to why using price/sales is silly. And also a comment from Mucho Maas which I love because I think it goes to the heart of why Q is such a compelling investment opportunity... THERE IS NO COMPARABLE COMPANY! I support Cena in his fundamental analysis and his ability to see the big picture and long term view. My guess is he would prefer not to have to give price targets and if he were asked if it is appropriate valuation procedure to use price/sales to determine value he would say no. Stu