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Pastimes : The New Qualcomm - write what you like thread. -- Ignore unavailable to you. Want to Upgrade?

To: Eric L who wrote (1458)	1/29/2000 11:43:00 AM
From: kech	Read Replies (2) \| Respond to of 12231

<< Once upon a time, Qualcomm dropped from $42 to $30 in about an hour or so. That was April 1996. If we reverse-split-adjust that, and add a zero, it's the same as from $160 to $120, which we've had already. Yes, Qualcomm has had a bit of a drop. But it dropped over a greater period of time from $86 [in 1993 before all splits] to $36, which was a big drop too. That would be like from $160 to $70 or so. Anyone ready for $70? Now THAT would be a LOT of fun. >> Maurice - I was thinking of that little drop in 1983 too, from $86 to $36. Q went from a glittering darling to a gutter inhabitant. Scorned and kicked around for raising the hopes and expectations of the fast money crowd. One moment everyone was betting CDMA would be used widely without a struggle and the next minute people were saying it would never be adopted and was held togetther with bubble gum and bailing wire. There is a bit of this going on this time. Probably not as extreme, but there is a sense of "how could we have thought this would be worth a 200 p/e. What folly to think anything could be worth more than a 50 p/e so lets take Q down to 70-80. Could happen. It doesn't seem to matter that it will earn $2.75 in 2-3 years and at a multiple of 70, since it is growing at 50%, would be worth close to $200, easy. Almost a 30% rate of return per year for three years.