Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 168.48

+0.2%

2:27 PM EST

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To: Uncle Frank who wrote (34920)	7/14/1999 12:25:00 AM
From: Jim Willie CB	Read Replies (1) of 152472

Uncle Frank and Perry Ganz, you guys dont get it... the $600m is not gonna go for a Caribbean cruise for all Qemployees... not for a week in Vegas to piss away... if the money were to be used to ignite a corp picnic bonfire, then sure, it is a lose situation that hits the stock with 3% your distrustful, shortsighted thinking would be very consistent with strong demands for massive dividends and zero investment in R&D or plant & equipmt assume it goes into marginal rampups in production: this money will go straight into a Qmoneymakingmachine that will turn every buck into $1.25 before taxes if the low margin handset destination, and $1.50 if the high margin chip mfg destination... take your pick: $150m incremental profit or $300m pretax simplistic reasoning... $100-200m incremental aftertax, or about $1/share earnings... x40 pe returns $40/share versus cost of $3/share you whine about now assume it goes into increasing capacity: without detail it might return almost as much incrementally, but with more investmt deductions... even if half that much, you might see close to $1/sh earnings again bottom line: you think of $3-6 taken from your pocket, which might exponentially have grown... I think $600m borrowed from us to drive profits in a lemonade stand that has a line of customers wrapped around all the way to Susie's house / Seamus

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