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

To: Skeeter Bug who wrote (66277)	2/8/2000 12:37:00 PM
From: J.B.C.	Read Replies (1) \| Respond to of 152472

I made no mistake, it's called present and future value calculations, A seventh grader can do them. Go back and reread the scenario, you can't keep it straight. If you can't do this simple bond problem how can you come to this thread and tout a valuation analysis on a technology stock? Jim

To: Skeeter Bug who wrote (66277)	2/8/2000 12:40:00 PM
From: Wyätt Gwyön	Read Replies (3) \| Respond to of 152472

Skeeter, how would you ever get your hands on $100 billion to "invest" if all you ever do is buy bonds? Starting with a modest 4- or 5-figure portfolio--as most people do--you would continue to have a modest 4- or 5-figure portfolio for the forseeable future. Factor in inflation and taxes, and your rate of return is probably 1-2%. You know, there are a lot of Japanese people who like that return--they have entrusted more than $12 trillion to their POST OFFICE for a 1% return. Last I checked, they weren't making a lot of money off investments, though. You like to make these hypothetical arguments about "what if" you had $100BB, but in reality, people have what they have, and that is what they must invest. You think that 6.5%, before taxes and inflation, is what you want, fine. But why do you come to the QCOM board to talk about it? Certainly not because QCOM is the only stock with a high PE. Do you have something personal against QCOM? That is a possible conclusion; otherwise you would seek out a stock with a much higher PEG ratio (not hard to find) to post your bond argument. Problems keeping up with the Jqnses?

To: Skeeter Bug who wrote (66277)	2/8/2000 2:32:00 PM
From: J.B.C.	Read Replies (1) \| Respond to of 152472

I made no mistake, it's called present and future value calculations, In 20 minutes I can train a seventh grader to do them. Go back and reread the scenario, you can't keep it straight. If you can't do this simple bond problem how can you come to this thread and tout a valuation analysis on a technology stock? PS. -- The answer to your question about the 11% is that it "looks" like you get an 11 %, trouble is; in a compounding instrument the gain has to stay with the instrument in order to get to the future value, you don't get to take it and use it somewhere else. You also have an investment that "looks" like it earns less than 8.5 % for about the final 15 year all the way down to 6.5 in the final year, not good in a 8.5 % world. Jim