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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 170.90-1.3%Nov 7 9:30 AM EST

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To: Art Bechhoefer who wrote (31008)1/10/2003 8:18:11 PM
From: kech  Read Replies (1) of 196546
 
Art- I think the reserve part of the policy takes care of most of these problems of timing of earnings relative to dividend payments.

I don't follow your concern with licensing revenue. The capital gain basis only increases if dividends could have been paid but were retained and invested instead. So the basis would only increase over time as these investments occur.

For Qualcomm, since the investments used to create them would have been made before the program becomes active, they wouldn't increase the basis. There would be no increase in basis associated with revenue items like licenses, only from retained "deemed dividends" used for investment.



Tom
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