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

To: slacker711 who wrote (143968)	7/25/2006 5:57:26 PM
From: Jim Mullens	Read Replies (1) \| Respond to of 152472

Slacker, Re: TXN CC (trash talking CDMA) / Total Addressable Market (TAM)Discussion, and >> My comment >> ”Therefore, all the current mobile wireless 2.5+ billion subs (?) plus new adds will become potential users of 3G devices over the next five plus year’s and thus represent Qualcomm’s TAM.” Your reply>> “However, I think that is an entirely useless way of looking at Qualcomm. The market values Qualcomm on revenue and earnings per year. That boundries of that market are the total value of the wireless market in any given year. Right now, Q has access to about 45% of the market (by revenue) likely growing to 80%+ very quickly. The final 20% will take a long time as GSM is going to take a very long time to displace in many areas. So your saying “valuing” Qualcomm based upon metrics that address its long term growth characteristics is “entirely useless”? And, the market values Qualcomm based upon only “revenue / earnings per year” ...in any given year. Well, I must be missing something then. All along I thought projecting a companies revenue / earnings at least five years out, based upon definable metrics, and then calculating a LT growth rate CAGR was of some importance. And, determining a companies TAM, especially if there is a dramatic change in such (access to previously inaccessible GSM subs--- 2+ billion strong) was of some relevance in developing those metrics. Thanks for your insight.