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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 182.40+3.5%Jan 6 3:59 PM EST

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To: Ramsey Su who wrote (4481)12/23/1999 10:23:00 AM
From: gdichaz   of 13582
 
Ramsey Su: As a fellow old timer, it is fun to note that the "brain drain" element of the "sale" is minimized. Clark Hare is absolutely right in spotting that a major plus of the "arrangements" with KYO is that the "sale" is more like a cost plus contract to KYO - the Q'ers will be "rented" out for 3 years, not "sold".

In substance this means that the downside of a "sale" (losing valuable brainpower and involvement in the intricacies of handset R&D) is minimized, while the upside (cutting losses and earning royalties) will happen.

Dr J shows again that if it needs to be complex to get the maximum win win, he chooses complex.

And we win.

Chaz

PS Note Gregg Powers is vindicated here also, since the "sale" is a "sale" in name - but a lease in substance - for the vital Q resource - smart people.
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