The New QUALCOMM - Coming Into Buy Range Message Board

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Technology Stocks : The New QUALCOMM - Coming Into Buy Range

QCOM 174.01

-0.3%

Nov 14 9:30 AM EST

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To: waitwatchwander who wrote (5839)	2/9/2010 4:49:25 PM
From: Art Bechhoefer	5 Recommendations Read Replies (2) of 9129

A $1 a year dividend on $2 of EPS is pretty steep. Not steep at all. It merely reduces the EXCESS CASH the company is sitting on (and not using very productively). Simply put, QCOM has too much cash. Either they boost the dividend, or they could also do a combination of a dividend increase and a share buyback. They should not issue shares to cover options to employees/management but should use the buyback to accumulate existing shares on the market, particularly at current prices below $40. Given the free cash flow, there is no reason whatsoever to dilute earnings through the granting of options. Incidentally, I've been corresponding with the company for the past week on this very issue. So far, they haven't even bothered to acknowledge my inquiries. This is the first time I haven't received even a timely acknowledgment. Times have certainly changed. Art

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