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


To: cfoe who wrote (4533)12/23/1999 8:52:00 PM
From: cfoe  Respond to of 13582
 
Just finished reading my way through all of today's posts. As someone who thought NOK would be the buyer and supported that view, I now find myself very happy to have been wrong.

In fact, looking back on my thinking on this matter and comparing it to what I have read today, I find myself somewhat in awe of critical thinking I find on this thread much of the time.

My way of saying I deeply appreciate the contribution you are all making to my understanding of the game we are all participating in.



To: cfoe who wrote (4533)12/23/1999 9:00:00 PM
From: RoseCampion  Read Replies (3) | Respond to of 13582
 
$300,000,000 x .06 = $18,000,000
$18,000,000 / 165 million = .11 / share.
So I get 11 cents from interest.


As someone who made the same mistake this summer (and was soundly chastised for it! <g>)...note that you're calculating pre-tax income. I would instead calculate:

$300M x 6.5% = $19.5M = .118/share pretax
.118 x .62 (38% tax) = .073/share

...closer to the estimate provided. Closer still if 194M outstanding share figure (including employee options) is used instead.

-Rose-



To: cfoe who wrote (4533)12/24/1999 10:19:00 AM
From: Art Bechhoefer  Respond to of 13582
 
There's no reason to believe QCOM would invest the proceeds from the sale in Treasuries - a rather conservative alternative. More likely, they would provide at least some capital to help expand CDMA overseas, using a company like Leap Wireless as the conduit. While I don't want to second guess the management, all I'm saying is that we can probably expect far more than $0.07 per share added to earnings.