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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 (91762)	5/20/2010 11:15:07 PM
From: slacker711	Respond to of 196537

Using non-GAAP earnings, to compare 2005 with 2010, is not apples-to-apples, because QCOM changes the definition of "non-GAAP" all the time. The only possible apples-to-apples comparison uses GAAP. I agree with your comments on Qualcomm use of non-GAAP, but I also think that it needs to be pointed out that all GAAP is not created equal. Imagine another company, QLite that didnt have a QSI division or any options grants and was earning $1.77 on a GAAP basis. They would need to grow earnings through organic growth of the underlying business. OTOH, the real Qualcomm has a very easy option for a one-time boost to earnings. Simply cut back hard on the expenses within QSI and cut back materially on options grants. I am willing to pay a bit more for Qualcomm than QLite since I believe that the latter scenario is a distinct possibility as PJ either shifts strategies or is replaced. Slacker

To: Jacob Snyder who wrote (91762)	7/14/2010 10:18:20 PM
From: Jacob Snyder	2 Recommendations Read Replies (2) \| Respond to of 196537

QCOM: safe to hold through earnings? (3Q10 report on July 21) Look at the chart of the last 16 months: It's easy to see when the last 2 earnings announcements were. Look for the big volume gap-down days. The best predictor of future behavior is the pattern of past behavior. Companies that disappoint, tend to do it again. And again. As far as valuation, not much has changed since April: Message 26478780 For 3Q10, analyst consensus EPS non-GAAP is $0.54, on revenue of $2.63 billion. No recent dramatic changes in estimates. disclosure: bought back QCOM in May at $36, still holding, following my "buy or cover at $36, sell or short at $48" plan: Message 26519010 I'll take the risk and hold through earnings. However, if the stock starts seriously under-performing the SOX, in the days just before earnings, I may reconsider. So far, looks OK.