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

To: Ruffian who wrote (26672)	4/10/1999 5:59:00 PM
From: Eric L	Read Replies (2) \| Respond to of 152472

Interesting chart, Michael. Out of curiosity I redid it, dropping the 2 stocks shown on the chart that I do not have a position in (LU & SUNW) and substituting I stock that I bought just about 100 days ago (AOL) despite my fundamentalist approach to investing, and one I did not buy (PCS) because of the same fundamentalist approach to investing, but sure wish I had. I mention Sprint PCS Group because its success is tied to the success of CDMA, and Qualcomm's success is, IMO, somewhat tied to the fact that the most successful bidder in the FCC PCS Spectrum auctions happened to choose CDMA over TDMA or GSM as a technology. The results are interesting even though QCOM IS a "Baby Gorilla", and the other 2 are not: 127.0.0.1:3456/SI/~wsapi/investor/chart?s=qcom+intc+dell+msft+aol+csco+pcs+emc&pts=100&span=Days - Eric -

To: Ruffian who wrote (26672)	4/10/1999 5:59:00 PM
From: MileHigh	Read Replies (1) \| Respond to of 152472

Company Qtr End Rev($MM) NI($MM) #Shrs(MM) P/S MktCp ($MM) CSCO 01/23/99 2,827.0 606.0 1,679.0 17.5 198331.9 DELL 01/29/99 5,173.0 425.0 2,750.0 5.8 119796.9 EMC 12/31/98 1,190.8 256.5 538.0 15.2 72562.8 INTC 12/31/98 7,614.0 2,064.0 1,740.0 7.5 227613.8 LU 12/31/98 9,204.0 1,414.0 2,700.0 4.7 171787.5 MSFT 12/31/98 4,938.0 1,983.0 5,400.0 25.8 508950.0 QCOM 12/31/98 941.2 48.5 74.2 2.9 10803.5 SUNW 12/27/98 2,784.4 261.1 810.6 5.1 56943.0 Very Interesting! Another ratio that is telling is the P/S over Net Margin- that is what is WS willing to pay for high margin earnings. They are as follows: Company Net Margin P/S PS/NM CSCO 21.4% 17.5 81.8 DELL 8.2% 5.8 70.7 EMC 21.5% 15.2 70.7 INTC 27.0% 7.5 27.7 LU 15.4% 4.7 30.5 MSFT 40.0% 25.8 64.5 QCOM 5.2% 2.9 55.8 SUNW 9.4% 5.1 54.2 This chart shows a few things to me; 1-WS loves CSCO 2-WS is paying a lot for Dell's earnings and they are a King in my mind- seems like a high multiple for a boxmaker 3- Street doesn't want to pay much for a real Gorilla, INTC-- MSFT only has higher margins. 4-QCOM seems to be valued in line until margins increase; that seems to be the key Other comments welcome!! MileHigh