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

To: Keith Feral who wrote (80330)	9/14/2000 4:23:25 PM
From: Jacob Snyder	Respond to of 152472

re: With a 45 PE for next year, this stock is butt cheap: Agreed, if you compare it to in-favor tech stocks, during the last 3 years. The problem is, of course, that the stock is very much not in-favor. Another problem is that tech valuations of the last 3 years are a historical anomaly, far above the usual historical range. Yes, it has been flat-lining. Since January, there have been 2 other plateaus, where it looked like the stock was forming a support line. Both those other "flat-lines" ended with an abrupt gap-down to new lows. I don't think that is going to happen, this time, but I could be wrong. If you liked it at above 100 (I didn't), and loaded up at that price, then you may love it now, but you don't have any cash to take advantage of it. This stock will be very volatile, for several more years. Once it becomes a more mature company (the standards wars are over, the chip niche is successfully defended against INTC and TXN), then the volatility will decline a lot (to that of, say, MSFT or AMAT). If growth is going to be 37%, then a forward PE of 45 gives you a PEG a bit over 1, which meets my definition of a reasonable (butt not buttocks-cheap) valuation. JS@alwaysworrying.com