Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jim Mullens who wrote (962)	6/15/2004 1:42:54 PM
From: rkral	Read Replies (1) \| Respond to of 2955

Jim, re "Running the above with the Quicken default discount rate of 15- 16% as I recall lowers the QCOM “intrinsic” value to somewhere in the $60’s / share." If you think the 15% default assigns a risk premium that's too high for QCOM, lower it to what you think is correct and then adjust your QCOM investments accordingly. But I see no point in arguing that someone else's risk assignment is too high. re "QTL $/sh...............$95 at 25% growth 6% discount rate" The above notwithstanding, you might consider adjusting the discount rate upward here. Firstly, QCOM's record shows that an average 3.3% of shares outstanding at the end of each fiscal year are due to option exercise during the year. Of course, one can compensate for this by adjusting the growth rate downward too. Lastly, to assume the QTL segment is virtually riskless, even with no dilution, is not realistic IMO. Ron