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

To: LLCF who wrote (1646)	9/17/1999 11:20:00 PM
From: Clarksterh	Read Replies (2) \| Respond to of 13582

DAK - Not to be argumentative, but I hear you saying that the chip market just isn't big enough? First, for me to call you argumentative would be the pot calling the kettle black. But you are, I think, missing the point of the argument. The debate is whether this sale is immediately accretive, and I think it is a good bet that it isn't. (However, if the handset margins have really really slid, then maybe it is. However it is almost certainly not immediately accretive compared to what we were all expecting for handset margins as of last quarter - 10% OM this Q.) Read Idler's notes from the conference - Thornley talks about accretiveness and the fact that ASICs will eventually make up for the handsets. BTW Just because it is not immediately accretive does not make it a bad thing. Qualcomm may find a better way to spend the money even if it doesn't show up on the doorstep tomorrow. Clark PS I can understand how you thought my last post was negative on the deal (when I'm actually neutral - show me the plan), since I said, 'I'd rather'. But the example was really only an example, and ignored anything other than immediate earnings.