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

To: Kayaker who wrote (66209)	2/7/2000 10:05:00 PM
From: Skeeter Bug	Read Replies (3) \| Respond to of 152472

kayaker, earnings growth, in an of itself, isn't a be all end all indicator. if i grew a penny at 100% a year, would you pay value my business at $100 B? hey, my growth rate is twice qcoms, right? people invest in a rational world based upon future expected earnings streams. these streams are compared to alternate investments. the tbill is such alternate investment. so are various other bonds and investment vehicles. several years ago, rational investing disappeared and many folks have tried to rationalize it. even so, it is irrational to these kinds of valuations for many of the leading stocks (which is why these kinds of valuations to growth ratio hasn't been seen by these companies in their history). i can't count how many times i've heard the following... buy it b/c it is a good company / market leader. crest is good toothpaste and a market leader, but i ain't payin' $1000 for it. does this simple example better help those folks understand why valuation is necessary to make an investment decision? they haven't a clue. if you can't figure out how to compare a guaranteed future stream of returns for a tbill and and expected future stream of earnings for qcom then might i suggest... -ng- the math is simple and straightforward. i would expect a knowledgeable person to do battle based upon my assumptions rather than the math. no wonder that hasn't happened! ;-)