SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 174.64+0.1%2:41 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: chinabull who wrote (35612)7/19/1999 12:30:00 AM
From: engineer  Read Replies (2) of 152472
 
Perhaps the management looked into the future, decided that they needed about $1B to go work on a few strategic things for the next year or so ,decided that wiht great earnings, they could inject enough stock to fill up the tank and still have good stock price apreaciation and then if the stock rose after the announcement, then do the split. Take the extra shares that would be bought by S&P and fill half of them with the stock offering.

I would think that they did this to balance the best of both worlds. Kind of like "hey, we will give you stock price but we need to take a little to go build a war chest which will leverage us up by another $1-2B in revenue over the next year or so, so your stock price can rise better longer...".

If this were true, it would show a management who 1) takes care of both sides needs, 2) balances the risk on known outcomes, and 3) is highly interested in growing the company alot faster than it has been. It would also show a management who gives a true shareholder win win. I have not seen alot of these in 25 years of investing...
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext