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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: bananawind who wrote (587)	8/5/1999 11:43:00 AM
From: gdichaz	Respond to of 13582

Jim: Your post strips away the curtain from much of the Wall Street treatment of the Q much as Toto did with the curtain for the Wizard of Oz. Art's point on how the Q did not need the street the way most young companies do and yours on the way the street felt deprived of its "rightful" fees for periodic financing through debentures and stock issuance helps explain much re the Wall Street treatment of the Q up until recently. Perhaps it wasn't just free lunches and handouts (of press releases and canned slanted info) from Ericsson. Now even a few of the analysts from other banks and brokerages are pointing to H&Q for slanting the MOT analysts mtg presentation to damage the Q. Most interesting. Perhaps the Q's management saw an advantage to its recent stock issue beyond just the $$'s gained - i.e. fees for the street. Thanks. Chaz

To: bananawind who wrote (587)	8/5/1999 3:27:00 PM
From: JMD	Read Replies (1) \| Respond to of 13582

Jim, re: "The sell side analyst community largely ignored Qualcomm for so long precisely because it had the ability to finance much of its growth with internally generated funds. ie. no prospect of lucrative investment banking or M/A fees, no interest in promoting the firm's prospects." Watch it, Florid One, you just might turn me into a cynic! O.K. gang, bring me up to date--I go to Hawaii for a week and my portfolio looks like I did the morning after I 'won' a Mai Tai-direct-from- pineapple-drinking-contest. Last I checked, the Q had just dropped a quick billion in its coffers and was well on its way to conquering the known telecom universe. Now we're down 15% cuz BatWing decides that it can make ASICs? The Good Doctors Jacobs and Viterbi must be shaking in their boots. Really, this is a joke, right? Surfer Mike has a better chance of getting ASICs out the door. Help--wassup? SM

To: bananawind who wrote (587)	8/5/1999 4:42:00 PM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 13582

Jim, that's a great insight and really explains the long periods of disinterest by investment firms. Just to add to your point, a couple of years ago QCOM made a private placement of convertible preferred stock in order to raise more cash. A private placement, by definition, requires no registration of securities, no legal fees, nothing but an agreement with the buyer (probably in CA to avoid any federal regulation). This was another example of an efficient way to raise money, but it didn't benefit any of the underwriters who normally would take their cut.