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

To: LindyBill who wrote (28043)	4/22/1999 7:17:00 AM
From: Mike Buckley	Read Replies (2) \| Respond to of 152472

Lindy, The market historically undervalues gorillas like Qualcomm. I know you and I agree about the essence of the point I think you are makihg, so I'm going to clarify that. Actually, the market does a reasonably good job of valuing gorillas. It's the traditional valuation metrics that historically have undervalued a gorilla's worth. That's why the valuation of a gorilla in the stock market is typically higher than what traditional valuations tell us it should be. Relating all of that to the discussion, I think the stock is presently fairly to under valued. I understand the impact of the mo mo players and those covering their short positions that creates volatility, but I still think this is not an overvalued stock based on fundamentals. My way of determining a potential gorilla's or gorilla's fair value that is to look at a PEG ratio. If the ratio is about 1.0 (or less) I consider it undervalued. If it's about 1.5 I consider it fairly valued. If it's 2.0 or more, I begin to think it's getting over valued even for a gorilla. That last assessment is probably too conservative given the history of gorillas, especially in this long-term bull market, but I tend to think that way for what it's worth. --Mike Buckley