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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (1805)	5/8/1999 6:57:00 PM
From: Mike Buckley	Respond to of 54805

Frank, but why compare them? Because Jean wanted to. Blame her. :) I agree that the analysts have been wrong in their longer-term forcasts for Cisco. However, the most recent 5-year CAGR has to be looked at in context. The company's total earnings over the past five years grew 51% annually as you mentioned, but the EPS grew "only" 41% annually. On the other hand, revenue grew 67% annually. What I'm really surprised no one mentioned is that Cisco deserves a much higher premium because it is a much larger, more established company with far greater visibility in the general market of stocks. (Maybe someone has mentioned that in a later post I haven't read yet.) We could debate forever whether Softie, Cisco or Intel is the best comparison of Qualcomm. Though I'll stick to my guns on Intel until someone changes my mind, I'm happy to accept any one of the three as being a model for Qualcomm's future success. --Mike Buckley