Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 170.90

-1.3%

Nov 7 9:30 AM EST

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To: Keith Feral who wrote (111922)	1/30/2002 6:28:47 PM
From: rharshman	Read Replies (1) of 152472

I agree with your comments and might add another perspective. If QCOM loses 100% of its earnings in strategiic investments over the next five years but, at the end of it still has a clean balance sheet and earnings of, say, $3 to $5 per share, are analysts (intelligent ones) going to give those earnings a discounted multiple because they would not have been achieved without the prior strategic investments? The new segmented presentation gives everyone the opportunity to value the company's four segments in any way they choose, including a hefty minus, if they wish, for the strategic ivestments. My own take is that 2/3 of earnings are from royalties and licensing and most of the rest is from ASIC sales. Their growth (which is augmented by strategic investments) is what we should be concerned with, not the semantics of " pro-forma: or "before investment losses" etc. As long as we get all the info, why be concerned with the presentation format?

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