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

To: Jim Mullens who wrote (102707)	6/7/2011 7:32:33 PM
From: matherandlowell	5 Recommendations Respond to of 197297

’ I think that 15% increase in revenues is small potatoes” Art, it’s not just a 15% increase, it’s compounding that 15% increase over 5 years which results in a doubling of revenue / EPS over that time. Gentlemen: Can we agree on a revenues number for this year? My understanding is that QCOM had revenues of $11 billion last year. Without counting in Atheros, estimates for 2011 revenues were $14.1-$14.7 billion. $3.5/$11 equals about a 30% bump in revenues this year. But Atheros should bring in about $1 billion in revenue. That would put this year's best revenue estimate at $15.1-$15.7 billion. $4.5/$11 equals a 40% revenue increase. I have not been following the Board as carefully in recent months and so it is possible that I am out of step with the consensus. But 30-40% doesn't sound like 15% to me. I just read about the Qualcomm Atheros "combo" chip: the WCN 3600. From what I can understand, that chip puts Qualcomm's crosshairs directly on Broadcom's forehead. Broadcom will soon understand that it might have been better to have synergies with Qualcomm than try to conjure up ugly disagreements. Maybe next year will have a 15% revenue increase. This year, the increase should be much higher. Could be a tough year for BRCM. I won't be showing any remorse however. j.

To: Jim Mullens who wrote (102707)	6/8/2011 4:40:20 PM
From: Art Bechhoefer	2 Recommendations Read Replies (3) \| Respond to of 197297

Jim -- if a 15% five year CAGR is “small potatoes” / “nothing to write home about” in your estimation…. What (approximately) would please you from QCOM over the next 5 years Earnings growth of 20% or more, year over year for the next five years would be acceptable and reminiscent of Intel back in the 1990s. This should be possible because Qualcomm has the most comprehensive set of patents that appear to be essential for wireless communications during the next five years. Incidentally, FWIW, if Qualcomm used its excess cash to buy back shares, it would approach 20% earnings increases, and would exceed the 20% rate if it chose to further reduce its cash by taking on some debt. Art