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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: Webster who wrote (10419)	5/18/2000 9:42:00 PM
From: Art Bechhoefer	Respond to of 13582

The conventional thinking that guides many analysts is that bigger is better. They like stocks such as AT&T, Lucent, Motorola, Nokia, Ericsson, and mention these almost always when talking about desirable telecommunications companies. QUALCOMM gets much less frequent mention in analyst reports. This is reminiscent of much of the period from 1993 through early 1999. The analysts who seem to have most influence on market prices generally look at financial data and are less comfortable with information on the substantive part of telecommunication companies. They for the most part know very little about differences in technology, and care even less. So it is not surprising that, except for brief periods following a favorable announcement of earnings, or a new patent, or a new alliance with another company with proprietary technology, QCOM shares seem to sit there and perform as well as great companies like AT&T. I just sit back and take advantage of these buying opportunities, but I also wonder how anyone can appreciate the decisions AT&T is making in its desperate attempt to somehow rescue sunk costs in TDMA and avoid the inevitable switch to CDMA. If any of us made such mistakes we'd be gone in a minute.

To: Webster who wrote (10419)	5/18/2000 11:45:00 PM
From: Boplicity	Read Replies (2) \| Respond to of 13582

re: However QCOM is significantly better positioned today than it was several years ago when the entire wireless industry wanted them snuffed out. That is 100% correct, and the market knows that, that is why QCOM has such I high PE. The most money is made in the market buying stocks that have unknown potential that is not realized. Once the market has priced in the potential, or the company no longer lives up to the potential, then the ride is over with till the company grows into the current priced in potential, or they change the current story. The markets is littered with stocks that have been priced correctly and are now range bound. All you have to do is look at DELL for an example of the above. Right now QCOM sports a PE of 139 with and est. five year growth rate of 37%. I believe the market will continue to re-value stocks, and QCOM will be cut in half from these level. I'm not going to debate you strategy, to each his own, but in my book holding from 199 to 48 for that matter to 90's is not prudent money management. Greg