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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (70736)	11/15/2008 11:07:24 AM
From: Maurice Winn	1 Recommendation Respond to of 74559

Yes, normally low earnings would be why QCOM would go to $5, but I don't see why QCOM earnings should go so low as to justify a $5 share price. TJ suggested $5, not me. I think QCOM earnings will continue to increase and might even accelerate now that QCOM seems interested in cost cutting instead of increasing staff in a seemingly endless expansion. When there are no-reserve auctions, assets can be sold for low prices and P:E ratios. $5 for QCOM would be a bargain and $32 is looking a LOT better than $55. Decades ago, a P:E of 10 was normal. Hopefully we get back to that. That means there are lots of profitable things to do which return high profits [which is a measure of how useful the efforts are]. Mqurice