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To: Mike Buckley who wrote (3695)	7/12/1999 11:31:00 PM
From: rel4490	Respond to of 54805

I agree with your analysis on earnings, Mike. I bet they exceed SSB's $.67

To: Mike Buckley who wrote (3695)	7/12/1999 11:36:00 PM
From: Uncle Frank	Respond to of 54805

Mike, the reasons behind my concern are contained in my email to Qualcomm: Julie Cunningham Vice President, Investor Relations QUALCOMM juliec@qualcomm.com Dear Julie, I am a Qualcomm shareholder, and am also a member of a discussion thread on Silicon Investor, where Qualcomm's every move is discussed and analyzed. I have been very pleased with Qualcomm's development and growth, and was very excited when they were selected to the s&p500 last week. But today's announcement of a secondary offering has me deeply concerned about a possible negative impact to my investment. Not only would the private placement of more than 4M shares be dilutive, it may very well establish a cap to qcom's market price and rob the stock of its positive momentum. I went through a secondary offering with another fine young company, which then dipped and hasn't recovered 2 years later. To my mind, the only justification for the risks of a secondary would be a severe need for cash, and that isn't apparent from Qualcomm's p&l. Can you help me and the other investors on the Qualcomm discussion group understand the thinking behind this potentially damaging move? Thanks in advance for your response,

To: Mike Buckley who wrote (3695)	7/13/1999 12:35:00 AM
From: Jill	Read Replies (2) \| Respond to of 54805

Mike, I think you're right about the issuing of more shares. I understand it could be seen as dilutive, but I think there's a strong possibility they'll have great earnings, and that along with S&P might cause a feeding frenzy, so they are preparing. Jill

To: Mike Buckley who wrote (3695)	7/13/1999 12:49:00 AM
From: Eric Jacobson	Read Replies (2) \| Respond to of 54805

Mike, I agree with your thinking on the QCOM offering being insignificant. I own HLIT, and a little while ago they had 11 m shares outstanding and they issued 3 m more in a secondary (this was much more dilutive that QCOM's announcement). When they announced it, I thought "uh oh!" But they issued them, put $70 million in the bank, and the stock has moved up since based on the growth of the company. I do find the reasoning behind the announcement curious. Most companies issue secondaries to fund particular company needs, like expansions or acquisitions. Usually it's not related to the stock market or the needs of fund managers.