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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: JGoren who wrote (33341)	6/27/1999 1:41:00 AM
From: Michael	Read Replies (2) \| Respond to of 152472

Airtouch giving Qualcomm Thin phone # 1 sales push. On the front page :) airtouch.com sure is a nice day Michael

To: JGoren who wrote (33341)	6/27/1999 7:51:00 AM
From: JohnG	Read Replies (1) \| Respond to of 152472

Goren--It occurs to me that you have just explained why QCOM mgt excercised all those stock options. The ordinary tax rate applies only to the difference in FMV and their cost to exercise. If mgt saw huge rapid stock price appreciation in the future, their best choice might be to exercise ASAP and take future gains as capital gains. This is just the opposite of bailing out of the company. John G

To: JGoren who wrote (33341)	6/27/1999 8:47:00 AM
From: Morgan Drake	Read Replies (3) \| Respond to of 152472

Help me out here. I've just reviewed AMT law in the CCH 1998 Master Tax Guide. I can't find long term capital gains listed as a tax preference item anywhere. I do see, however, that Incentive Stock Options (ISOs) do increase Alternative Minimum Tax Income (AMTI) "by the amount by which the price actually paid by an individual for an ISO is exceeded by the option's fair market value at the time his rights to the stock are freely transferable or are not subject to a substantial risk of forfeiture (IRC Sec. 56(b)(3))." What am I missing here? Thanx.