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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Techteam who wrote (8918)	2/25/1998 11:18:00 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 152472

Techteam, of course I wouldn't justify Qualcomm's business on royalties alone. If that was the plan, they could cut staff to a few lawyers. Years ago they committed themselves and the shareholder's money to being in all the areas they now are, to ensure rapid development of CDMA. But as shown, royalties are going to give a big heap of profit to go along with the rest. I suspect some worry about the number of licensees causing lots of competition for Qualcomm. But the more the merrier and the more likely Qualcomm as the main exponent of cdmaOne and associated products will dominate the industry having got off to a leading start. All the little competitors have to develop their business on a few hundreds of thousands of handsets - at least initially. P:E of 30 or 60 or whatever is irrelevant still. Profit is incidental at present and is simply a function of managing cash flow with investment for rapid development. Give it a couple of years and Qualcomm should start to be measured in profitability rather than revenue growth and financial stability. Irwin said they aren't thinking of dividends - all is reinvestment for now. I believe Microsoft comes into the quality company description with P:E of 56. Which is close enough to 60. And it has been there for a long time. Maybe there are others. Remember, it is all about future earnings, not current earnings, when we are considering developing companies. MikeD, if you are going to be the tech leader, you'll have to start writing "asymptotic erlangs" as the correct spelling of the technical terms. Mqurice Dow 16000 Feb 2002 Qualcomm $100, 25 July 1998. $80 within a couple of months, just as soon as everyone realizes Korea and everywhere else are buying cdmaOne handsets flat out and basestations are rolling out around the world despite some IMF refinancing.

To: Techteam who wrote (8918)	2/25/1998 11:22:00 PM
From: straight life	Read Replies (2) \| Respond to of 152472

QCOM's PE is 30; LU's is 153 (currently). Is LU 5 times the company QCOM is? Rather, no one expects much from QCOM. QCOM has in the past had PE's of 100 or so. Expectations were higher then. Hopefully, the likelihood that they WILL disappoint is therefore low.

To: Techteam who wrote (8918)	2/26/1998 6:26:00 AM
From: qdog	Read Replies (1) \| Respond to of 152472

MSFT is fairly close at 50

To: Techteam who wrote (8918)	3/1/1998 1:07:00 PM
From: Disabled Account	Respond to of 152472

A good current example of a PE of greater than 60 is America Online. Now THAT is truly unsustainable! But what I was really talking about was the fact that if a company consistently doubles its earnings, as QUALCOMM has been doing, it's not unusual to see a PE much higher than 60. You can use other measurements as well, based on data such as increases in revenue, which, again, have been substantial for QUALCOMM. It's a lot better company than most people realize. Art