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

To: Jon Koplik who wrote (113272)	2/14/2002 11:05:46 AM
From: kech	Read Replies (1) \| Respond to of 152472

It would even be an interesting exercise just to accumulate the R&D and add that to retained earnings. Alternatively one could include that as an asset that would then show up in shareholders equity. It would begin to approximate the market value of IPR but only partially. One could even take a 20 year depreciation on this "investment" and it would still add significantly to the balance sheet equivalent of "assets".

To: Jon Koplik who wrote (113272)	2/14/2002 11:26:16 AM
From: Stock Farmer	Read Replies (1) \| Respond to of 152472

Jon: Nice try. Q's IPR and the rest of the stuff it "owns" is currently carried on the balance sheet at $0.00 - sure - but hardly missing. It's embedded in the stock price. So we can easily see that you and other staunch defenders of the Q value that IPR et. al. at about three tens of billions. Those who aren't buying value it at less. That's what makes the market. I'm not commenting on the value of Q's IPR. It's not like I'm suggesting the company should have a price:book ratio of 1. Duuh. I'm commenting on the ability of the company to actually make money. Or more precisely, on the ability of management to husband something so tremendously valuable as Q's IPR and make money from it. Which seems to be a little suspect at the moment, based on what management has been able to do since they were appointed. And I'm commenting on the degree to which management is being compensated, relative to the degree of money that the company is actually making. I'm not at all commenting on the value of the IPR. But if you'd like to go there, we could take the IPR, give it a useful life and ammortize it, to try and get a handle on how much the company should be extracting per year from something so valuable. As a means of measuring how well management is doing their job.