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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (19504)	2/24/2002 5:18:40 PM
From: Dexter Lives On	Read Replies (2) \| Respond to of 196499

You've confused circular, with a cycle. Yes, a very destructive cycle. If there is a shortage of voice capacity, why are prices declining at an alarming rate. Economics 101 dictates that there must be an oversupply, or that demand is decreasing. Take your pick. Regards, Rob

To: slacker711 who wrote (19504)	2/24/2002 10:45:42 PM
From: S100	Respond to of 196499

US telecoms groups may have to write off $60bn By Peter Thal Larsen and Thorold Barker in New York Published: February 24 2002 21:02 \| Last Updated: February 24 2002 21:35 Two of the most acquisitive US telecoms groups may have to write off almost $60bn in goodwill by the end of the year as new accounting rules take effect. According to research by Stern Stewart & Company, the consultancy, long-distance carrier WorldCom will have to reduce the goodwill on its balance sheet by $37bn while Qwest Communications, the ailing telecoms group, will have to write off $21.8bn. Write-offs of this magnitude would be among the most striking examples of companies having to recognise that acquisitions made during the bubble years were not as attractive as they seemed. A rule drawn up by the Financial Accounting Standards Board, the US accounting watchdog, says companies must conduct regular reviews of the goodwill they have on their balance sheets and judge whether it has been damaged. Goodwill is the difference between the price a buyer pays for a company and the value of the target's net assets. It represents intangible assets, such as a company's brand name and its reputation in the market place. During the stock market bubble of the late 1990s, companies paid inflated prices for acquisitions. This has already prompted AOL Time Warner to take a massive goodwill write-off on its acquisition of Time Warner, in early 2000, while JDS Uniphase has also written off billions of dollars related to the acquisition of Uniphase. These acquisitions were generally paid for in shares. However, according to Stern Stewart, this did not make the deals financially attractive. Martin Ellis, senior vice-president at Stern Stewart, said: "You can structure transactions that are EPS [earnings per share] accretive but destroy value." WorldCom was one of the most aggressive acquirers, using its highly valued shares to snap up companies such as MCI and Intermedia. Stern Stewart calculates that of $50.8bn of goodwill on its balance sheet, $37.3bn will have to be written off. But WorldCom contests the figure. In its first-quarter earnings report, the company said it had appointed an independent appraisal firm to conduct impairment reviews on its intangible assets, and expected the new rule to reduce goodwill by $15bn-$20bn. Qwest, which used its highly valued stock to acquire US West, the local telecoms operator, said: "We are still evaluating what our calculations would be. We have got until the middle of the year to complete them." news.ft.com

To: slacker711 who wrote (19504)	2/25/2002 9:16:06 PM
From: Maurice Winn	Respond to of 196499

<Ever try and make a wireless call at 5 pm? In most parts of the country, I find the argument that there is too much capacity less than compelling.> There is too much capacity! It's just that the capacity is mismanaged. Yes, here comes the Wacky Wireless rant. At peak times, the algorithm at the base station should increase the price per minute to dissuade people from making calls or yakking too long...ooops, gotta go... I'll finish later....heh heh!! Mq