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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: Allen Furlan who wrote (3653)	4/12/2002 11:16:37 PM
From: BDR	Read Replies (1) \| Respond to of 5205

<<Speaking of mispricing I am surprised at the strong support on this thread for qcom.>> Many of the original posters arrived here from the Gorilla Game thread and still keep their holdings such as QCOM with a very low cost basis. I was called out of QCOM (not a low cost basis, unfortunately) some time ago at 45 or 50. My only position in QCOM now is a debit put spread using the May 45s and 40s that cost me $2.95 three weeks ago and looks like it will be approaching its maximum value of $5 soon. But that isn't covered call writing and so I haven't discussed that position here.

To: Allen Furlan who wrote (3653)	4/13/2002 10:43:09 PM
From: grinder965	Respond to of 5205

Hi Allen, You said, Speaking of mispricing I am surprised at the strong support on this thread for qcom. Barrons had qcom on pricey stocks list last weeks issue at p/s of 11. I know that it is a great company with fantastic intellectual property but how long can it defy the gravitational forces of its financial metrics? You would be hard pressed to come up with a more misleading or useless "financial metric" than a price-to-sales ratio for measuring QCOM. This is a good example where a complete understanding of the business model and doing adequate DD is of paramount importance.