Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ruffian who wrote (26639)	4/10/1999 2:06:00 AM
From: MMW	Read Replies (5) \| Respond to of 152472

Hi Michael, I am also a subscriber of Gilder Tech news letter. The only reason I subscribe his news letter is I don't want to miss out some good opportunities. Since he is talking some thing I can understand, I figure that I could not loss much. If what he said making some sense, I will take a look, otherwise, I just simply ignore it. In his ACENDANT list, only one company seems making an investment sense to me, that is QCOM. reason 1) it is projected growth rate for 1999 is 58%, and the stock only sells at 145/2.72= 53 PE currently. 2) The company has 130 CDMA patents and 400 are filed and still waiting for approval. 3) Recently a deal struck with ERICY is going to help them improve their fundamentals, namely earning. I have done a little home work on the company. They have 5 products lines: OmniTracs Mobile communication station, CDMA technology, Eudora Email software, Globalstar Mobile Satellite System, and CDMA Infr. products(which is selling to ERICY). The financial fundamental has suggested this is high growth company with past 5 years average growth rate of 54%. Only one area it has done very poorly. That is its net margin, only 3.4%. Comparing with other traditional growth companies, MSFT, INTC, CSCO, DELL, and VTSS. QCOM is nowhere near its peers. This also reflects its management efficiency. Only $10,000 net income per employee. Because of its management efficiency, I am not convinced at this point that QCOM deserves Gilder such a hype on the company. Could you shed some light on this? Cheers! Mike