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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 179.26

+0.5%

3:59 PM EST

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To: hedgefund who wrote (59011)	1/25/2007 8:01:51 AM
From: carranza2	Read Replies (7) of 196970

I am not a securities lawyer but it seems that buying back shares at a time when the company knows of a favorable material event is not illegal. Existing shareholders are not harmed because the share price goes up as a result of the repurchases, they reduce the number of outstanding shares, etc. Those who may have wanted to purchase shares at price X but will not do so at price Y because Y, being a function of the buybacks, is higher than the wish to pay, would have a hard time showing any damages. The ethical angle is a difficult one. An argument can be made that the ethical thing to do under the circumstances is to advance existing shareholders' interests by buying back the presumably undervalued shares. I don't think Q owes any ethical duty to the market as a whole. There must be something more to the ethical angle than Keitel revealed since I don't see any significant one in the one he mentioned.

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