Qualcomm Incorporated (QCOM) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 176.67

+1.6%

Nov 12 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: verdad who wrote (129293)	5/26/2003 2:50:43 PM
From: Art Bechhoefer	Read Replies (1) of 152472

Re: Leap shareholder suits-->>who made these jackasses executives at this company?<< The CEO of Leap was a QUALCOMM executive. The quality of management at QUALCOMM has been well above that for almost every company in the technology/telecom sector. If there was any evidence of intentionally misleading shareholders about the value of the spectrum acquired by Leap, it will be very difficult to prove. The disclaimers that companies make regarding forward looking and related statements protect the company from virtually all claims of this sort. To prove that the Leap executives actually knew the spectrum was not as valuable as they claimed would require getting stuff like e-mail notes between top execs. This is not easy, nor is it likely that one could make a very strong case against the management. Why? Because most of the spectrum acquired by Leap was at prices generally lower than for the industry as a whole (based on potential population served). As long as Leap reported the value of this spectrum at cost, it was still probably LESS than market value, and in that sense the book value of the shares may have been UNDERstated. I don't dispute that the value of spectrum has declined. But the fact that Leap acquired its spectrum at relatively lower cost than most helped make Leap a good investment, on paper anyway. I would continue to argue that what really sunk the company was the combination of fraud in the sale of phones and new accounts and cutthroat pricing by competitors. Finally, these shareholder lawsuits are not likely to result in any benefits for shareholders, inasmuch as liabilities exceed assets. If demand increases for spectrum in the areas where Leap operates, perhaps the shareholders would recover a small amount from liquidating the company. That, plus the goodwill (i.e., current subscriber base) might produce something for the shareholders, but probably not more than $1 or $2 per share in a few years. Art

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next