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To: Thomas Mercer-Hursh who wrote (47854)	10/12/2001 8:58:29 PM
From: Pirah Naman	Read Replies (1) \| Respond to of 54805

Which may be helpful, if you are solving the problem backwards. I.e., what rate of average growth does the current number represent and is it beyond the bound of reason. If it is beyond the bound, then fine, the question is answered. True. And that would be a useful result - you could eliminate a "mistake." (Mistake = decision with a high probability of yielding an undesirable result.) But, if it is within the bounds of reason, then one still hasn't assessed whether is is reasonable for this particular company. True. Your example boils down to this. A coarse effort at valuation has the potential to eliminate some - but not all - mistakes that might slip through when making no attempt at valuation. I agree with that. - Pirah

To: Thomas Mercer-Hursh who wrote (47854)	10/12/2001 10:07:13 PM
From: gdichaz	Read Replies (1) \| Respond to of 54805

Thomas: Hey this is fun. Seems like the "hypothetical" you just posted might be not too far off what might actually happen for Qualcomm. But who knows. Your point that such a pattern is more feasible for a company which is not dependent on building up manufacturing capacity in house is an eye opener for me. (Always learning - <G>) The basis for Qualcomm's earnings from royalties and the design of chips and software such as the steady stream of chips with increased quality and speed as well as BREW in software is well known, but I for one had not put that together with the advantage of being able to achieve especially rapid earnings growth without the drag of needing to build up internal manufacturing capacity - if demand ramps up sufficiently fast . Thanks. Cha2 PS And I do plead guilty of being an optimist - a glass half full has always seemed better than considering it half empty.