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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 174.78

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To: slacker711 who wrote (93206)	7/20/2010 11:19:59 AM
From: Jim Mullens	4 Recommendations Read Replies (1) of 197032

Slacker, re: Morons / cash hoard / investment portfolio / Buffett- An alternative / minority opinion Part 1- "The above numbers still dont explain the 95 cent GAAP number though...and that is because the GAAP numbers include the catastrophic (and moronic) losses that Qualcomm suffered in their investment portfolio. Can that happen again? Unfortunately, the answer is yes. Page 27 of the link above shows a breakdown of Qualcomm's cash portfolio. If anything, the portfolio is actually more aggressive in October of '09 than October of '08. I dont think it can reasonably be expected that portfolio losses would get anywhere near the level of the financial crisis so I would still apply some discount to the '09 number, but clearly there are still some risks. So basically, I think it is wrong to call the core Qualcomm businesses cyclical....…” however, the morons in charge of this company have made it so because of their passion for trying to extract every last dime out of their cash horde. A passion which has cost shareholders billions over the years. I dont think I paid much attention to the breakdown in cash holdings when it was first published....however, now that I have, my only conclusion is that PJ and the entire financial team should be fired. I am sure they have done well over the last year with their returns, and I am also sure that it will eventually end badly. If I wanted a management to invest my money, I would go with Buffett….” >>>>>>>>>>>>>>>>> 1) . ”If anything, the portfolio is actually more aggressive in October of '09 than October of '08.” …………….10/31/08…..10/31/09 Cash………45%..............28% Bonds……..40%.............59% Stocks……..15%.............13% It may be more aggressive in the sense that there has been a significant move out of cash (money market securities with minimal returns… ( 0.5%) and into much higher yielding bonds. However, the stock position was reduced to 13% from 15%. 1.a) An allocation mix of 87% cash/ bonds v 13% stocks does not appear “aggressive” IMO. 1.b) Looking at the 1year returns of 2yr /5 year bonds funds (~2% - 4.9 %) vs <0.5 % on money market funds appears to be a positive move (non-moronic) IMO. Quarterly Pre-Tax Returns1 as of 06/30/2010 Annualized Returns Description 1 Year 06/2009 3 Year 06/2007 5 Year 06/2005 10 Year 06/2000 Inception 06/1987 DFFGX 4.94% 5.20% 4.42% 5.11% 6.19% Short GovernmentMorningstar Category 4.30% 4.89% 4.04% 4.30% -- BofAML US Trsy/Agcs AAA 1-5 Yr TR USD2Broad-Based Index 4.04% 5.97% 4.85% 5.05% Quarterly Pre-Tax Returns1 as of 06/30/2010 Annualized Returns1 Description 1 Year 06/2009 3 Year 06/2007 5 Year 06/2005 10 Year 06/2000 Inception 02/1996 DFGFX 1.90% 3.33% 3.59% 3.66% 4.34% World BondMorningstar Category 8.81% 6.68% 4.78% 6.43% -- Citi WGBI 1-3 Yr Hdg USD2Broad-Based Index 1.98% 4.19% 4.01% 4.07% 1.c) My recollection is that a few years back Keitel / Granis and company were criticized for being too conservative in their “cash management” philosophy.

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