No. This stock is very dramatically undervalued in the long run.
Essentially, the transition from 2.5 G to 3G is in the early stages. Once complete, QCOM will get a royalty of approx 3%-7% on any item that uses any flavor of CDMA (either W-CDMA or CDMA 2000 or 1x, etc.). There is a misimpression on the street that there is a battle between GSM and CDMA; in reality, the next generation of GSM is in fact W-CDMA.
The art is trying to determine the future revenue stream of CDMA. My guesstimate is that with CDMA currently accounting for approx 15% of overall market, we should easily be able to mupltply earnings by between 3 and 5 several years out.
So, my best guess is $3 to $7 earnings 5 years from now.
Prophet
Market Data 
Markets 
AI
