Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 166.77

-4.2%

3:59 PM EST

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To: san yao who wrote (128605)	5/5/2003 5:35:10 PM
From: queuecom	Read Replies (2) of 152472

San Yao: Your message re: insider sales generated quite a few responses. It's obvious from most of the responses that more analysis is required of the list of sellers to better understand the motivation for these sales and the possible beneficial use we lowly outside investors can glean from this information. First, I believe that the company reason cited for the sales by Dr. J was for estate planning reasons. This is BUNK!! Also, the many responses on this board were way off the mark demonstrating a clear lack of knowledge of estate taxes and estate planning. Every one seems to be focused on capital gains taxes. Forget them. The IRS bites the apple upon death on the value of your estate and that bite is about 50 -55%. And don't forget the State of CA. They probably hit the gross estate for 5 -10%. By not selling shares now you defer ALL taxes until death. But, by selling now you pay the IRS 20% of the capital gain (probably 100% of the gross sale price if Dr. J got these shares for pennies). Now upon death the 80% you now have in cash is taxed at the aforementioned onerous estate tax rates. So, selling NOW for estate tax reduction purposes makes no sense. As I said the reason cited is BUNK!! Julie Cunningham should be ashamed. But the amount of the sale in relation to Dr. J's total holdings was trivial so the reason hardly matters. A true tempest in the teapot. I would be more concerned if the sons sold. I would also have to evaluate the other sales that occurred (Thornley and the Board members). That may be more revealing. In any case , whatever the reason for Dr. J's sale, I think it was ill timed and used poor judgement. I'd suggest you keep close tabs on his future actions and not on his words. They truly do speak loudly.

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