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

To: brian h who wrote (21050)	1/9/1999 7:33:00 PM
From: Clarksterh	Read Replies (3) \| Respond to of 152472

. Just wait for Dr. J. decide to max. its shareholder value; then invest it. That way Dr. J. can keep his personality and I can feel pretty good about my investment too. The problem with this scenario is that you assume that the stock will not go up until Dr. J decides it will go up. This is false. As many studies have shown, eventually it will start tracking the revenue growth rate, no matter what Dr. J does. However, exactly when that is is very very hard to judge. (It could have happened 2 years ago, it might not happen for another year - who knows) When was the last time you heard of a super rich and successful market timer? Many of Warren Buffet's stocks go down in the first year or two. The only thing that management can possibly do is boost the P/E, but the long term stock growth rate is not, (repeat not!!!) affected by management jabber except insofar as it boosts their currency if they need the currency for revenue growth. Clark PS Jon and I are not disagreeing with each other. We are both saying that the job of management is to increase the share price. The only question is over what time frame. I would argue that over 5 years or more I want the highest possible stock growth rate, and over a time frame longer than that, management jabber isn't going to matter too much, but revenue growth will. Was it really Bill Gate's sex appeal that has raised MSFT to such heights? I don't think so. Speakng of which, MSFT did exactly the same thing as QCOM - it was completely flat for two years in the late 80's, even while it continued to grow revenues. Should BG have distracted himself by doing PR? Given that it isn't a strength of his, I don't think so.