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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: kelseysuncle who wrote (49136)	12/9/2005 2:48:59 PM
From: carranza2	Read Replies (1) \| Respond to of 196562

Eighteen cents per share options expense is a lot, almost a third of a billion dollars straight out of cash flow. Kills eps growth for next year, puts it into negative numbers as compared to '05. Another lackluster year for the share price in '06 as a result. Unless market wide p/e ratios go up, it makes Q's shares dead money for yet another year. Anybody want to pipe in? Am I missing something?

To: kelseysuncle who wrote (49136)	12/9/2005 2:53:13 PM
From: JohnG	Read Replies (2) \| Respond to of 196562

"Slide 5"" Probably doesn't help --but this is old news. The market should be looking toward 2007 earnings as we are almost through the 1st quarter of 2006. The options expense is primarily related to past years AND included as a result of FASB changes. Of course we have a history of these "one Time" changes occurring every year. There was the write of of investment losses in S America. There was the change to recognize royalties as reported as opposed to accruing them -- thus pushing 1 quarter's earnings increases fwd 1 quarter. Now we have recognition of implied cost of stock options beginning with the 9/30/2005 quarter. Next year it could be something else.

To: kelseysuncle who wrote (49136)	12/9/2005 3:59:27 PM
From: Jim Mullens	Read Replies (2) \| Respond to of 196562

Ku, Re “tumble from grace yesterday, i.e. GAAP including options expense down 2-6% YOY for FY06” Don’t think so. This info was presented in Nov when guidance was first presented and again during London day. The comparisons the “analyst” ( First Call, etc) make are to the “proforma” figures--- $1.17 vs $1.48 for ’06 and $1.75 for ’07. Again, the Q’s forward FY PE is only 26, significantly less than these other NAZ “High flyers” – EBAY- 43.9 Yahoo- 53.6 SBUX- 37.1 GOOG- 47.4 APPL- 32.3 AVG- 42.8 Fy06 EPS $45.40 / $1.48 = 30.7 PE - Curr FY Fy07 EPS $45.40 / $1.73 = 26.3 PE - Forward FY QCOM @42.8 x $1.73 = $74 potential vs $45 today Positive Euroland WCDMA sales this Christmas season and into next year should be the catalyst for ignition (hopefully the general market will cooperate) finance.yahoo.com Earnings Est Current Qtr Dec-05 Next Qtr Mar-06 Current Year Sep-06 Next Year Sep-07 Avg. Estimate 0.37 0.36 1.48 1.75 No. of Analysts 29 29 32 13 Low Estimate 0.36 0.34 1.40 1.55 High Estimate 0.39 0.43 1.66 1.98 Year Ago EPS 0.28 0.29 1.17 1.48