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

To: Andrew N. Cothran who wrote (70487)	4/13/2000 4:39:00 PM
From: The Reaper	Read Replies (4) \| Respond to of 152472

I really hate to say this but Cramer makes a lot of sense if you just think about it. I was taught that PE ratios should reflect the annual earnings growth rate. If QCOM is sporting a 100 PE they should be growing their earnings at 100%. We all know that projections are for 50%/year for the next few years so it follows that the PE should be at 50. Now we will allow for the proprietary nature of QCOM's business model but does it warrant the PE of 100? CSCO is a really good case. They are nowhere near earnings growth of 100% yet they are carrying a PE of much higher than 100. In a rising interest rate environment, PE's must shrink to allow for the discounting of future earnings. Everything points to lower multiples on these stocks amongst others. This market action has got me convinced that buying the dip is gonna be a mistake this time. Dammit, I hate to say it but I'm going to cash or even short some of these dotcoms. (Never the Q! though). JMTC kirby