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Tuesday, October 25, 2011

point out a mistake - QCOM

I need to point out a mistake I made in my QCOM assessment a few weeks ago.

My thesis on QCOM still stands, and should see 57 by years end, but the multiples used in the previous post were wrong.

QCOM currently trades at a trailing PE of around 21.4.  If QCOM reports as expected (0.78), they will have a stock price of 57.5 if the same multiple (21.4) is given to the stock.

At some point toward the end of the year, QCOM will be allowed to trade at such a multiple because its eps is currently accelerating.  (Albeit, if they report better than expected numbers, 57 may be achieved sooner. If they report so-so numbers, it may take longer. If they report crappy numbers, I will have to re-assess the fundamental thesis on the stock.)

Just wanted to point out my mistake.

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