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

To: Uncle Frank who wrote (54027)	5/13/2003 2:05:24 PM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

Frank, Served Available Market: cdma cell phone systems Does that imply that GSM by itself is not a market for GSM1x? If so, it doesn't make any sense to me. Imo, penetration of the SAM is the more important for stock valuation purposes. Why? Let's get away from Qualcomm. Assume Company ABC penetrates 20% of a total available market which is 95% of a served available market. The revenue, profit margins, free cash flow, etc. are the same regardless of market context applied. That's why market penetration in and of itself has nothing to do with stock valuation. If you continue to disagree, show me one valuation metric based on market penetration. I've never heard of one. By the way, just because I'm willing to discuss the subject using your term, "served available market," doesn't imply that I agree that it's a valid term. It ain't. :) --Mike Buckley