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

To: Jacob Snyder who wrote (90962)	4/21/2010 9:36:58 PM
From: slacker711	7 Recommendations Read Replies (2) \| Respond to of 196520

If QCOM had Buffett's "deep moat", with profits protected by all those patents and proprietary technology, then EPS should be going up as fast as revenues are. I think that Buffett's deep moat also requires a management team to not piss away the profits from the businesses. The GAAP earnings include the QSI division which is now throwing away shareholders money at the rate of $136 million a quarter. FLO had total revenues of $2 million last quarter (revenues are reduced by the free months) and losses increased by $50 million. Slacker

To: Jacob Snyder who wrote (90962)	4/22/2010 4:14:26 PM
From: The_Net	1 Recommendation Read Replies (1) \| Respond to of 196520

Slacker, is this post (#90963) verifiable?

To: Jacob Snyder who wrote (90962)	5/7/2010 10:48:08 AM
From: Jacob Snyder	4 Recommendations Read Replies (2) \| Respond to of 196520

QCOM's range has been 36-48 since 2004. Moves above and below that range have been brief, for the last 6 years. This suggests two simple ways to make money: 1. Short around 48, cover around 36. 2. buy around 36, sell around 48 ...and one way not to make money: LongTermBuyAndHold. Actually, going all the way back to 1999, BuyAndHold has been punished by the market. Given that stock valuations are inversely related to interest rates, and we ended a 27-year decline in interest rates in 2008 (so, probably the next 27 years will see rising interests rates), BuyAndHold will probably continue to be punished. At 36, QCOM has a PE of 36/1.77 = 22. If I subtract the net cash from the stock price, I get a PE of (36-11)/1.77 = 14. disclosure: no current position, but very close to buying.