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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Jim Mullens who wrote (53965)	5/4/2003 12:01:44 PM
From: slacker711	Respond to of 54805

As far as the “analysts” being burned in the tch wreck, that's true also but I wouldn’t mind having Qualcomm even trading at NOK’s PEG of 1.55 (1.55 x 20 = 31PE x $1.40 = $43) or TXN’s PEG of 2.30 (2.30 x 20 = 46PE x $1.40 = $64). At least as far as TXN goes....the PEG is a useless valuation method. It is a cyclical company that is currently coming out of a downturn and should see a dramatic upswing in gross margins and revenues (if semi's turn around). Since Qualcomm is fabless, it doesnt see these types of swings during downturns or upturns. Nokia is being valued based on the fact that it's handset operations are doing well....and that the infrastructure division will eventually turn around. You could probably use a PEG on the handset division but I think the infrastructure business is starting to look pretty cyclical. Slacker