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To: Stock Farmer who wrote (45977)	8/29/2001 5:08:10 PM
From: Seeker of Truth	Respond to of 54805

I think Thomas has a valid point. Companies like IBM,HP,Merck etc. have been doing R &D for decades so we can assume that the cash flow reflects the constant spending on acquiring new IP.. But certain companies, such as QCOM or SEBL have relatively recent IP and have yet to realize a substantial fraction of it. In such cases the cost of acquiring the IP in relation to the sales may be much larger than is the situation for IBM,PFE etc. In other words we may expect the profits to grow more rapidly than the sales, in those cases. It's a matter of the advantages of scale. I forgot this latter situation.