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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 173.58+0.2%9:34 AM EST
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To: Art Bechhoefer who wrote (111569)1/24/2002 8:47:10 PM
From: A.L. Reagan  Read Replies (3) of 152472
 
OK on the phones. Pardon the seeming relentlessness here, but let me tussle a bit on your book value assumption. Out of the current $6.3 billion book value, you have around $1.64 billion of net book represented by all these brilliant/goofy investments in the CDMA Evangelist/Doofus division (take your choice on nomenclature), $2.4 billion in low-earning cash and marketable securities, and $.53 billion in goodwill.

So if you look at real book value dedicated to "core operations", and excluding cash, the number is more like $1.73 billion book value of the core enterprise.

For your comparison on price to book ratios, you might ought to think about deducting from the market value the non-core net book assets, and then compare that result to the net book of the core operations. Obviously you will derive a multiple much higher than 7, even after adjusting for normal working capital cash to run the business.

Lastly, did anybody think it was weird that in the quasi-segment balance sheet break-out, the segment balance sheets don't balance? Did these guys switch auditors to Andersen when I wasn't looking? (Just kidding.) Maybe they didn't want to show a line in the "core" segment balance sheet captioned "Intersegment Investment in Doofus division" that would be on the order of $1.726 billion.
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