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

To: SpudFarmer who wrote (57564)	12/29/1999 12:28:00 PM
From: ggamer	Respond to of 152472

Back to the future!!! etrade.com Qualcomm (QCOM) 503 : Back to the future. Qualcomm gets a price target of $1000 from Paine Webber. The target is for 12 months away. But from the premarket activity, we estimate it will be around, oh, say, 3:31. After all, it has already reached 566 with a full 45 minutes to go. Seriously, sometimes there seems to be little point in coming up with valuation arguments. This particular argument is based on fundamentals, by taking a Price/Earnings ratio of 175 times 2001 earnings and then taking a present value estimate of that future value. Present value? Although we at Briefing.com are strong believers that stock prices should reflect the future value of earnings of the company, we also recognize that that line of thinking isn't driving the stock market. After all, Qualcomm was less than $400 just a few short months ago. We love Qualcomm as a company. They have fantastic management, designed the basic technology of the future of wireless phones, and are changing the company business model to the most leveraged model they can. It is a fantastic company. But with the action in the stock now dominated by momentum players, it is just plain foolish to think that an investment in Qualcomm is a sure investment in the future. The biggest risk, in our view, is now longer that Qualcomm won't fulfill its business purpose. The biggest risk is that Qualcomm will be abandoned by momentum players who are looking for big moves in a single day. There isn't any indication that momentum players are leaving Qualcomm however, in fact, today's initiated coverage will probably bring even more. But a long term investor needs to recognize that the investors next to him are in Qualcomm only so long as the action continues. - RVG

To: SpudFarmer who wrote (57564)	12/29/1999 12:38:00 PM
From: DWB	Read Replies (4) \| Respond to of 152472

Here's a question for the thread.... Say in 2010, QCOM actually does have a $20 billion dollar royalty stream. What do you do with that kind of money, if you're an ASICS company that doesn't have any fabs? I'm not arguing the dollar number, or the timing, but going forward, this is going to be a question that they need to address. What do they do with all the money they're going to be making? And yes, I can imagine funding new projects, and buying complementary technologies, but come on... $20 billion a year's worth? What about a (shudder) dividend? Just curious what other people thing... DWB Q10K/Y2K+5