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

To: Jon Koplik who wrote (106332)	10/6/2001 11:15:48 AM
From: marginmike	Read Replies (3) \| Respond to of 152472

That process can be looked at both ways. the issue in question in 84 was that inflation wasnt as bad as it was percieved, and therfore unjustified. The problem now is that growth prospects are viewed as better then they actuall will be due to a perverse bubble we had in financial assests. 400billion dollar companies CANT grow 30% a year. Frankly its a feat for any LARGE cap 30billion or so company to sustain that type of growth. So the question with S&P Pe arround 25, are valuations still unrealistic and clinging to are perception of ridiculous growth rates that cant exist. I was tought in the early 80's that a super duper high growth company should get no more the 1X or 1.5 times trailing earnings as a standard valuation. Ie if Qcom's growth rate is indeed 25(without the acounting tricks like selling LWIN stock) then Qcom should have a valuation with a PE of 25-40. The 40 being FULL value, and 15-20 being undervalued. At the moment on 1.05 in trailing earnings Qcoms Pe is about 28. This is probably fair value. This assumes a growth rate of 28. Therfore Qcom is definetly coming into buy range, but it by no means is a raging bargain by historical norms. The whole market is reverting to normal valuations, and the Fundimentals of many companies are not in question. NVDA and other stocks with good growth outlooks have been anhilated with the NT and Lu of the world. This is no reflection on the companies, just at the demand and supply of its stock.