To: gdichaz who wrote (20901 ) 1/6/1999 9:21:00 PM From: Jon Koplik Read Replies (1) | Respond to of 152472
To all newcomers and old timers - "Eyes glaze over." Someone sent me yet another "post-mortem" on the "blow-up" of Long Term Capital Management. (This one was from The New York Times, 11/14/98). One memorable detail in the (long) article was the following (regarding Robert Merton, Nobel prize winning economist, and partner at LTCM) :Mr. Merton, who built cars and drag-raced in his youth, spends his spare time playing poker -- so seriously, says a colleague, that he tries to throw off his opponents by looking into a light bulb to constrict his pupils before playing his cards. Good players are said to be able to determine by the dilation of their opponents' eyes whether their cards are a blessing or a curse. This is something I will probably never forget. Then, I was thinking -- did I ever see something that made my eyes do the "Hey, four aces" thing ? One time was the first time I looked up information on Qualcomm (after a friend (who is probably reading this) told me some rudimentary facts about the company; and I promised I would look into it, and then get back to him). I did my usual search at Hoover's Online :hoovers.com They described Qualcomm as : the developer and owner of technology for an emerging worldwide standard for digital wireless telephony (or, something like that). (Hoovers' "company capsules" are edited over time, so the QCOM capsule probably says something slightly different now). Then I saw the revenue growth over the past years. My eyes definitely did that "four aces" thing. Well, that was about 18 months ago. Qualcomm has continued to grow amazingly fast. (In fact, I once used Hoovers' "Stock Screener" website stockscreener.com to confirm that NO publicly traded corporation in the U.S. has sales in the billions of dollars and super fast revenue growth except for Qualcomm (and a few companies that have done a lot of mergers (and increased their number of shares outstanding real fast))). Anyway ... still waiting for (most of) the rest of the world to figure out that Qualcomm stock is cheap at 1 times sales. Jon.