Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: marginmike who wrote (2984)	9/10/2000 11:43:00 AM
From: sam	Respond to of 196568

QCOM will "signal" that earnings are improving...and the stock will begin to move BEFORE actual numbers hit the street. Unfortunately, that's the way it is. The signal will probably come from a "friendly" analyst. Just a guess. It's safer to wait -- of course. But the best returns will come to those who take the risk. The skepticism I hear on the street -- as well as fund selling earlier in the year -- are actually good signs to me. Not from a trading perspective, but rather from a long-term-hold perspective (which is what I have here). In addition, like it or not, positive 'real' news from China and/or Korea will move the stock. Probably a lot. JMHO FWIW

To: marginmike who wrote (2984)	9/10/2000 4:46:50 PM
From: Art Bechhoefer	Respond to of 196568

Well, you're right that some analysts have sufficient technology background to understand where QCOM is going, but your point that lower than anticipated earnings are what is causing the stock to trade at roughly two-thirds less than earlier highs this year isn't convincing. The earnings were not THAT disappointing! The other factor that caused the stock to drop was the herd mentality, and that applies to analysts with or without technology background. They're too scared, uncertain, cowardly, dumb, or otherwise intimidated to do anything different from someone who knows next to nothing but works for a prestigious firm. Check out the latest BARRON'S. Another analyst now said QCOM was okay last year, but this year there are some better ones out there (translation: They're tired of waiting.). So the analyst names companies that are selling at a far greater market multiple than QCOM, that lack management track record, and that in general shouldn't be selling at even half the PE of QCOM or price to book value of QCOM. So what I have said still goes. These analysts are just nutty.