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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 159.42-1.2%3:59 PM EST

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To: Ramsey Su who wrote (8451)2/12/1998 2:18:00 PM
From: Clarksterh  Read Replies (2) of 152472
 
Ramsey - 5) The discussion regarding basestations focused more on vendor financing. I think Sidman is confusing vendor financing with buying business.

OK, now I am confused. How do you believe 'vendor financing' and 'buying business' differ from one another? I used to work at Hughes Space and Telecommunications, and many of the countries wanting satellites wanted 'financing'. Hughes, having the number one market share, and the most reliable geo birds, often told them to fly kites. It was only the wannabes (eg Matra) that would cater to their wants (often to their future detriment as the buyer later defaulted). Hughes definitely viewed the vendor financing as buying business. And the same goes for Telecomm. I did a stint recently as a consultant on a WLL project, and many of the smaller vendors view Qualcomm as buying business with their 'vendor financing'.

Whether you view it as vendor financing or buying business depends on whether its you or your competition that is doing it.The only thing that really counts is what the terms are. Do they allow for siezure of assets in a country where such things are allowed? Does the buyer have a reasonable debt to equity ratio? Etc.. Does anyone know what terms QCOM is giving?

Clark
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