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

To: A.L. Reagan who wrote (111570)	1/24/2002 8:53:06 PM
From: A.L. Reagan	Respond to of 152472

So if you look at real book value dedicated to "core operations", and excluding cash, the number is more like $1.73 billion book value of the core enterprise. At the risk of creating a monologue, the positive side is look at the stunning return on investment generated from the core net book value. That's the nugget of gold in the whole earnings model, as the Q's faithful have long known. What a pity that such a large amount of these incredible returns have to be redeployed in the Evangelist division just to sustain what is turning into very modest growth.

To: A.L. Reagan who wrote (111570)	1/24/2002 8:55:41 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 152472

The trouble is that if you adjust the book value to eliminate all the investments, then you'd have to make similar adjustments for other companies, and what you'd get would be . . . well, I can't even imagine what it would be. My purpose in using equity per share is to get a figure that at least can be compared to other companies. Also, the investments tend to improve revenues from chipsets and/or royalties, so it would be unrealistic to look only at one part of those assets. Art

To: A.L. Reagan who wrote (111570)	1/24/2002 9:49:24 PM
From: S100	Read Replies (1) \| Respond to of 152472

I think you have to remember that in 95 or so, there were no CDMA phones or infrastructure. They had to do that themselves, and much of the funding came from OmniTracs. Some could take the view that QCOM pretty much created the CDMA system. They are continuing to do that world wide now. It is their money and they can invest it where they feel it will further their interests. If you feel they should maximize the return, perhaps you should consider investing in a Mutual Fund, many have less than 2 billion and could show a better return, but not increase the CDMA market. As far as book value, what is about one city block of multistory, relatively new buildings in what seems to be a high value area of SD worth? They get rent from Ericcson, if I remember correctly. Also, I think SPINCO was to pay for use of a building owned by QCOM. I think they also bought the former Headquarters of a failed bank at the bottom of the market for bank buildings. So they may own many of the buildings they use. How about a link to the numbers you feel are wrong. There are so many, I get lost.