Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 163.32

+2.3%

3:59 PM EST

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To: Clarksterh who wrote (118979)	5/19/2002 7:12:12 PM
From: hueyone	Read Replies (1) of 152472

It is there and very easy to find and interpret if you are looking for it. Surely you must agree that including stock option expense in quarterly Core Earnings figure press release would be much more understandable and transparent than requiring companies to put a little blurb in the footnotes once a year in a 10k which appears several months after the end of the fiscal year. The fact is that most investors do not look for and do not interpret the footnotes in the 10k. As a result investors are treating "earnings" reported by companies who have managed to substitute stock options for employee compensation the same way they treat companies who pay their employees in cash. The quality of reported earnings for the two companies is clearly not the same, and as Greenspan has noted, the result of treating these companies the same way has resulted in gross misallocations of investor capital within our economy---not to mention the side effect of enabling thousands of incompetent executives, whose companies never made a real profit to walk off with millions of shareholder's dollars. We can let this problem continue unabated like Japan lets systemic problems in their economic system continue unabated until things finally reach a full blown crises, or we can face the music now and give investors more transparent earnings reporting. It will warp earnings..... Precisely, except that this is the problem we have now---to the tune of billions of dollars. Best, Huey

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