Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 172.72

-4.4%

Nov 4 3:59 PM EST

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To: Mark Fleming who wrote (24990)	3/25/1999 12:39:00 PM
From: Clarksterh	Read Replies (4) of 152472

Actually, we should look at the percentage gain, which is higher for QCOM. No. The very fact that Ericsson's cap went up more than twice as much as Qualcomm's indicates (assuming you believe the market knows what it is doing) that Qualcomm would have been better off in a JV. If I am worth $10K and discover something which I sell to a big company for $1M cash (i.e. my market cap) and their market cap immediately increases by $1B (meaning that the market expects to make 100's of millions per year), should I feel good about that even though my net worth increase 100 times and their only increases 1% (assuming they were worth $100B). Or in other words, in any transaction each party should have his net worth change by the same percentage and whoever has a larger percentage change got the better deal? I think not - if nothing else it would make accounting interesting. Clark PS Jon K's argument is a better argument that market is not saying Qualcomm was ripped off. (If you assume that the QCOM increase in price over the last 2 months was due to knowledge about this deal).

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