Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 174.08

-0.6%

3:53 PM EST

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To: Maurice Winn who wrote (129935)	6/30/2003 2:16:02 PM
From: Skeeter Bug	Read Replies (1) of 152472

maurice, you do a great job outlining the strong points of a company optioning their own stock. you are right, many times it works out well. however, if your logic is to be taken to the extreme, every company that options their own stock would always win in the long run. i don't think this is the case. 1. the market values stocks, not qualcomm insiders. would you agree we just left a time when irrationality ruled the markets? well, irrational is a double edged sword - especially over the short term. 2. business environments change - sometimes on a dime. nobody can predict these changes. 3. sometimes management's self interest is different than the owners. eg, management wants to sell their stock and they have an incentive to keep buying overpriced stock in an attempt to make it appear the company is doing well. there are others. but, like you say, there is good and bad. there is nothing wrong with an owner being comfortable with options trading as long as they understand the risk and the contribution it makes to "hypothetical" pro forma eps, if any.

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