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

To: Moominoid who wrote (112802)	2/10/2002 3:51:58 AM
From: Maurice Winn	Read Replies (2) \| Respond to of 152472

<It is this discounted free cash flow which is the theoretical value of stocks in the text-books and what an acquirer should pay with adjustment for taxation considerations of a merger. > David, true, but the discounted free cash flow is a function of R&D achievements. Which is only known after customers buy the results. To work out what that free cash flow will be, we need to include the R&D payments somehow. Where a company has 17 years of successful R&D investment, it's not a bad bet that they'll continue, when there is plenty of evidence that the process isn't stalling and has plenty more to achieve. My point was really just that the worry about equity in lieu of license fees was absurd compared with the scale of revenue and growth in R&D spending [which the commentator didn't mention - Dr Schit picked on 3 silly negative points with the obvious intention of creating some negative sentiment for nefarious purposes and not a sensible analysis of the business]. But I really do think that few people understand the implications of the R&D growth to over $400 million. When they understand ZIF and RadioOne and the effect on BOM costs and RadioOne device size, efficiency and subscriber demand, then they'll have an inkling of what R&D can achieve for sales and the bottom line. Mqurice