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

To: Eric L who wrote (143358)	7/6/2006 2:45:15 AM
From: Elroy	Respond to of 152472

Tech got ahead of itself. Sector got ahead of itself. QCOM got ahead of itself. I don't know if I agree that QCOM got ahead of itself. It's about to report revenue growth of ~47% year on year in the June 2006 Q, and that's not a cyclical peak, it follows years of consistent revenue growth. Stocks that grow revenues more than 25% for years on end, much less 47%, aren't "ahead of themselves" until they get to PEs above 40x, and I don't think QCOM hit that level. Today it is at 22x forward 12 months EPS forecast, that's ridiculously cheap for a 25%+ revenue grower.