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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 154.12-3.3%Jan 20 3:59 PM EST

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To: Gregg Powers who wrote (10951)5/28/1998 11:10:00 PM
From: Houston_CPA  Read Replies (1) of 152472
 
Bride with a dowry or extra mouth to feed abandoned?

If the New Company is going to be capitalized with just $200 or $300 million, why bother? Otherwise, the unwanted divisions could be shopped about and sold off to other telecoms.

If in fact there is to be a new company with any chance of success it needs its part share in the family inheritance such as OmniTracs, Globalstar LP units, unrealized gain interest in Mexico venture, etc. to generate cash in the very near future. Without a big endowment, it will always be cash poor, in debt to banks and Qualcomm, and selling its stock too cheap in secondary offerings. Better a new $30 stock, with taxable gain element, than a $5 tax free problem child.
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