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: Art Bechhoefer who wrote (13318)	7/26/2001 5:44:43 PM
From: Skeeter Bug	Read Replies (2) \| Respond to of 196568

art, at some point you have to factor in declining earnings into your model, too. focusing solely on book value can be outright silly. imho, qcom is expensive now. it has lots of potential so it should trade at a premium to other companies with declining earnings. however, 60-70 times earnings seems a bit high at this point, imho. the bubble has burst and now it is time to struggle through the hangover. good luck.

To: Art Bechhoefer who wrote (13318)	7/27/2001 8:46:26 AM
From: Mark Marcellus	Read Replies (1) \| Respond to of 196568

Art, valuing this company based on a multiple of book value seems to me to be just about as logical as valuing it based on the mean temperature in San Diego. I don't necessarily have a better answer, but that just doesn't make sense. Essentially you would be saying, for example, that their inventory and their investments in struggling companies are more important factors than the market value of their IPR.