Zeev's Turnips Patch-No Politics (ZEEV)

[baletwine]

More chatter about QCOM

"Re QCOM I believe fundamentals are very strong and expect an excellent earnings report for this their 4th qtr. and guidance going forward. I am long holding November calls. However last qtrs earnings were very good but the stock didn't really pop at all. I am betting that it will tomorrow but the macro market may have a lot to say about that. Good luck on whatever you do or don't do."

Yo, Jazzcat...

I've got no position in QCOM, so I won't be able to profit here. But my question comes out of the following: Agreeing that QCOM is a fine company, has no debt and about one year's revenues in cash on hand, they only expect to make a about a buck this year and next year, yet the stock trades around 35 dollars. The growth rate is estimated in the low 20's, so by that method it seems overvalued somewhat.

Given the pretty real threat of a slowdown for business going forward, what above market-norm multiple would you have QCOM trade at?

And cuz I can't make $ with it, I wish you profits with it, as long as QCOM moves in disconnect with the market overall -- for I am on the dark side at the moment... :)

-- Bale