<<I simply disagree that their track record is "so poor". I see their track record as superior. The Snap Track puchase is an example......>>
OK, that's an example of a successful investment. Make a list of similarly successful investments they've done. Then, make a list of the failures. The Failure list is longer. Quarter after quarter after quarter, 50-100% of the profits generated by their licensing and chip divisions disappear into their Strategic Investments division.
Before CDMA was accepted as the Global Standard for 3G, these gambles were necessary. Today, they aren't. Alternately, if you think they still need to invest in startups like Pegaso, then that means CDMA's position as a future Global Standard is not secure. It's one or the other. Either they are taking unnecessary risks, or their technology is not yet proven.
What's really discouraging, is that the pattern of taking unnecessary risks is continuing, even after some very expensive lessons.
I have become sufficiently discouraged by management's inability to learn from past mistakes, that I have recently cancelled all further buy orders. I am currently holding QCOM lots bought at 40, 35, and 32.5. I will not buy more, and I will sell my higher-cost shares in the 40-50 area. I won't get out of the stock entirely, but I will lighten up. It is moving from the "core" to the "speculative" part of my portfolio. I'd rather hold larger positions in companies whose managements seem to understand the basics of Risk Management, companies like AMAT and ALTR. |
