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: kech who wrote (103417)	8/30/2001 10:50:45 AM
From: pcstel	Read Replies (1) \| Respond to of 152472

It doesn't seem too bright to value it today at 15 p/e of $1 earnings or $15. Fortunately the market is smarter than that and gives it a 60 p/e on its $1 in earnings instead. But again.. Let's take a 15 P/E as a "Historical Average" P/E ratio.. That 15 P/E ratio was based on actual GAAP results. Which in Qualcomm's case is currently a loss of about 40 cents a share.. Versus the trendy Pro Forma results.. Which is not a true indicator about the financial status of a company.. As an investor.. On a historical basis.. You need to discard the Pro Forma results and compute a "apples to apples" comparison based on GAAP results and then compare that to Historical Averages.. I am not advocating that this is the sole indicator of how to place a "present/future value" on a company.. But, one that should be considered. I am not saying this only in terms of Qualcomm.. But, every other company as well.. PCSTEL