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Strategies & Market Trends : Gorilla and King Portfolio Candidates
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To: Mike Buckley who wrote (51169)4/29/2002 6:37:13 PM
From: gdichaz  Read Replies (3) of 54805
 
Mike: Qualcomm's small (in percentage terms) investment in so called junk bonds is both prudent and practical.

The timing makes sense and the yield and potential gain in price make this very very low risk, and far far better that keeping all their cash in Treasury bills which have a low yield or govenment bonds which will decline in price as interest rates rise.

As a person who agrees with their stategy in that, I applaud them for superior money management of their cash balances.

BTW with all the brick bats thrown, the investment in SNAP TRACK seems to have been forgotten.

An extremely smart and well time investment.

And remember that the Pegaso investment which has now been "solved" was part of the Ericsson "deal".

You will remember of course, though others here may not, that Qualcomm offered to invest in Japan when it looked like there would be no CDMA 2000 investment there, but in the event KDDI picked up that so the offer was enough.

Also note the investment in India. Unless the courts make it impossible for WLL, (and in India anything can happen), that again is a fine investment for Qualcomm both in making a major market happen and as a financial investment per se.

And the use of INQUAM in Europe (Romania et al) and in Indonesia has been very useful in the 450 K space.

All in all, Qualcomm deserves kudos for its investment skills for advancing CDMA and as moneymaking instruments.

Best.

Cha2

PS And BTW the "pro forma" tables give substantially more data which an investor needs to judge the value of an investment than other companies I follow (such as Siebel) do. And the "gap" between GAAP and pro forma will narrow substantially in the next quarters so that Qualcomm will soon have higher earnings on a GAAP basis than the way it is reporting pro forma unless some major problem occurs.
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