Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 165.13

+1.1%

3:59 PM EST

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To: MileHigh who wrote (39779)	9/5/1999 2:51:00 AM
From: puzzlecraft	Read Replies (2) of 152472

What do you mean by saying that the handset division puts a drag on EPS? If Q sells the handset division, then there are LESS total earnings and LESS total sales. The remaining margins will be higher but the totals will be LESS. Therefore the price to sales and price to earnings ratios will be even higher than they are now. Isn't the handset division expanding rapidly? Aren't the new Q thinphones and higher priced PDQ's expected to do well? Q will have more cash, but what could they do with it that would be better than what they are doing now with the handset division? There are other less tangible benefits to having a handset division. Q has a direct line to the public which forces the Q to make sure that the CDMA handset logic works correctly: a massive feedback mechanism from the public. Q loses the feedback and idea incubator mechanisms if they sell the division. Q loses the very thing that the public identifies with the Qualcomm name. John

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