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 Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: marginmike who wrote (97102)	4/7/2001 3:43:06 PM
From: gc	Respond to of 152472

I do not like to hear the words "dumb comentary" or or "retarded analysis". Such language is inappropriate for a mature person.

To: marginmike who wrote (97102)	4/7/2001 5:04:11 PM
From: JohnG	Read Replies (2) \| Respond to of 152472

When 6 months into the fiscal year, company stocks generally trade base on earnings for the following fiscal year. We have the following earnings consensus estimates: Year Ending Sept 30, 2001 $1.26/share Year Ending Sept 30, 2002 $1.65/share 5 Year Earnings growth rate 30% Thus the forward PE given a market price of $46/share is $46/$1.65=27.8 which is lower than the estimated earnings growth rate of 30% per year giving a PEG (PE/Growth) of 0.93. This is less than one. Generally, stochs with higher growth rates will trade for higher PEG ratios a fact which can be demonstrated mathmatically. The only problem with calling QCOM a value stock is that its projected 9/2002 earnings per share and its projected earnings growth rate are somewhat subject to investor scepticism. This is because of 1) heavy past QCOM reliance on 1 time write offs due to G*, sale of infrastructure & sale of handsets; 2) the sales gap QCOM experienced between 95A and 1X; 3) doubts by some as to a) how rapidly 1X will roll out, b) when Korean 1X will kick in, c) when verizon, Sprint, Nextel amd Bell Canada will be operating 1X systems; doubts by some as to when China, Korea, India and S. America will contribute to CDMA ASIC sales; 4) FUD as to the overall esirability and benefits of 3G that is being spread by the incompetents over in Europe. Some of us feel that we are now able to see through the fog and predict the outcome in these questonable areas. Others can't. Still others have some vested interest on amplifying these concerns due to the sour grapes attitude of the inept Europeans.