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

To: David E. Taylor who wrote (117015)	4/22/2002 9:13:46 PM
From: Ibexx	Read Replies (2) \| Respond to of 152472

As a long term investor of Qualcomm, I would have to say that it might not be fair to compare the margins of NOK with those of Qualcomm, as the former is more of a manufacturing company where Qualcomm draws a good portion of its revenues from licensing and royalties, thus comparable to Microsoft or other software vendors. In principle, the gross margin and net profit margin of Qualcomm should be significantly higher. Regards, Ibexx

To: David E. Taylor who wrote (117015)	4/22/2002 9:30:13 PM
From: Wyätt Gwyön	Respond to of 152472

hi David, thanks for the numbers. it is a pretty stark contrast, and an indication why QCOM trades at a much higher valuation (as multiple of sales) than NOK does. it looks like those QCOM figures for net margins are pro forma excluding the boondoggles. ValueLine provides what look to be pro forma net margins for QCOM in the mid-20s since 2000, and for NOK in the low double digits since 1994 (excepting 1996). QCOM also lost shareholder equity last year while NOK built equity (QCOM is expected to gain equity this year). 3-5yr equity estimated at 28.67BB for NOK, vs. 12.45BB for QCOM. i don't have a particular drum to beat for NOK, except that i think many here are too bearish on it relative to their bullishness on QCOM. i guess i am a bit skeptical that everything will go smoothly for QCOM while the rest of the industry runs into the gutter. somehow i don't think QCOM is immune to the broader industry trends, but that's just my opinion. as for shorting, i don't have the temperament for big short positions myself (or big any positions these days--my biggest position is about 2% and i probably wouldn't have a short position bigger than 1%).