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

To: hedgefund who wrote (59765)	2/5/2007 9:03:23 PM
From: Art Bechhoefer	Respond to of 197392

HF--I'm basing my estimate on the current PE of 25 for the trailing 12 months and 21 for the PE based on fiscal year '07 estimate of $1.80. A more appropriate PE, given the actual growth in operating earnings (i.e., non-GAAP) would be around 40, especially in light of the unusually sound financial condition of the company. This would be more in line with other technology companies, though I concede that if we consider QUALCOMM simply as a fabless semiconductor company, then we would have to compare it with the whole group, which is somewhat depressed, owing to a perceived glut in certain kinds of chips. Put another way, the current depressed price is partly due to the uncertainties over the outcome of the litigation and partly due to the depressed prices of semiconductor stocks in general. Is there a chance that INTEL, for example, might reach $26 this year? That stock, despite a rather poor recent growth record, currently sells at a PE of 24 for the trailing twelve months. If Intel did reach $26, I think that QCOM would show at least a commensurate improvement, along with the rest of the sector. Art