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

To: jmanvegas who wrote (62982)	1/18/2000 9:48:00 PM
From: Ingenious	Respond to of 152472

jmanvegas: rules are the same, just timing and perceptions change. #1 rule: earnings are the key to stock growth. brcm had great earnings but the price already anticipates teh earnings months/years ahead of time. if the market overanticpated, as it may have today, the price corrects. For example, qcom simply got ahead of itself. it will find a trading range (probably between 120-175) and trade in that range until the next earnings announcement where it will step up or adjust based on a relatively speed of growth. brcm may behave the same or a bit differently depending on the investor perception of their product and the actual rev. growth. #2 rule: see rule #1 If earnings go up, P/E goes down and justifies a corresponding increase in price. P/E ratios still matter today just like they always did except a P/E ratio of 100-1000 may only be forward looking for several years rather than 20 years. IMHO, Leland