Qualcomm Incorporated (QCOM) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 168.09

+1.8%

Nov 28 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: JMD who wrote (29797)	5/11/1999 4:06:00 PM
From: bananawind	Read Replies (6) of 152472

Mike, Thread shareholder value enhancement After hearing a few of the rumors flying around the various boards today, I got to wondering if maybe there are other things Irwin and company might yet have up their sleeves. First though, please everyone, this is just idle speculation on my part. Simply wondering out loud and thought I'd throw it out and see what you all think. Seems to me that with the 3G holy wars all but over, Ericy signed on, money losing infrastructure gone, and royalties set to go to nearly 100 million per quarter soon, Q now has a little more maneuvering room to bring out some latent value and/or position itself for future opportunities. First thing that comes to mind is Wireless Business Solutions (nee Omnitracs). What if Q were to try and bring out the value in this division? I've never tried to disaggregate Omnitracs numbers but would not be surprised if it does 500 to 800 million of revenue with an after-tax margin of 15%. With an earnings multiple of 20 that would give a business value of about $1.5 billion to $2.5 billion. What would be wrong with the idea of doing an IPO for one third of the business and spinning the rest off to shareholders? Q would end up with $500 to $800 million in its coffers from the IPO and shareholders would get OMNI shares worth $6 to $10 per post-split share. OMNI's cash flow would give it plenty of borrowing power to fund operating needs and growth. Even better, why not throw in wirelessKnowlege and CineComm to give the IPO the kind of internet sex appeal that generates these crazy valuations? None of these businesses are central to Q's primary mission of spreading cdma across the globe. Although Omnitracs was a cash cow very important to Q in the past, the current financial picture is quite different and it is possible Q could use some of that IPO cash to fund important investment initiatives. Comments invited. Regards, Jim

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next