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


To: Tom Kearney who wrote (65286)1/30/2000 3:06:00 PM
From: 16yearcycle  Respond to of 152472
 
Tom,

don't tell me he is using yhoo to get pe's??!!



To: Tom Kearney who wrote (65286)1/30/2000 3:15:00 PM
From: 16yearcycle  Respond to of 152472
 
Tom,

One issue, as we've been discussing in pm, is what would fair value be? You know that my argument is that we definitely are valuing things differently than ever before, BUT a few times per year, prices do become consistent with what they would be using historical valuation measures.
With Q, this is still a little bit of bad news. It would be aggressive to value it at 110. I think Q will make 1.20 this year, and with a growth rate of 50%, a pe of 70 is pretty aggressive. 85 is about right. From a price of 85, we are all going to compound our money at about 60% over the next 5 years. Even better than a bank. And if you don't want to miss the boat, buying tomorrow is still very, very smart, but you want to be aware of the possibility of short term pain.