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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Jacob Snyder who wrote (52977)11/8/2002 7:14:12 PM
From: Mike Buckley  Read Replies (2) of 54805
 
Jacob,

You mentioned that Qualcomm was cash-flow negative in 2001. By my calculation (operating cash flow minus capex minus tax benefits relating to employee stock options), the company generated $577 million in free cash flow. What calculation are you using?

I'd also like to know why stock options are anti-dilutive in years when there is a loss in GAAP earnings. I've seen that explained repeatedly for all companies but I've never understood why. Even after it's explained, I don't know that I've got enough accounting know-how to understand it, but I'll give it a shot.

--Mike Buckley
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