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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 (21977)	4/29/2002 6:33:53 PM
From: carranza2	Read Replies (1) \| Respond to of 196972

At the prices we're seeing recently, don't be surprised if we do see buybacks.

To: slacker711 who wrote (21977)	4/29/2002 6:45:12 PM
From: Andrew N. Cothran	Read Replies (2) \| Respond to of 196972

In my opinion, the use of a portion of excess cash to invest in so-called junk bonds is a good move. The bonds are usually at a discount to face value and have a higher interest cupon than the so-called "blue chip" bonds. By diversifying, one can realize a safe return that is several points higher than the non-junk category. By retaining the bonds to maturity, one can also realize a capital gain as the price paid for the bond rises to the face value of the bond. QCOM should see its investment income increase significantly through the use of junk bonds. As investment income increases, reportable earnings on the common stock also increase. As earnings increase, the price of the stock should rise accordingly. QCOM would do well to reserve a part of its cash largesse to repurchase some of its shares in the open market. This action, combined with that of increasing earnings on the common, should put a floor under the common stock price! And the common stock price could certainly use a FLOOR. I hope that today's close was the floor.

To: slacker711 who wrote (21977)	4/29/2002 7:26:27 PM
From: Cooters	Read Replies (2) \| Respond to of 196972

Can anyone explain to me how buying $270 million worth of junk bonds is a better investment than Qualcomm buying back their own stock? The bonds could be strategic in nature, or could represent an investment in companies QCOM has great confidence in. LWIN would be an example of both. Cooters PS They NEED to be buying QCOM stock, now!

To: slacker711 who wrote (21977)	4/29/2002 10:04:15 PM
From: engineer	Read Replies (1) \| Respond to of 196972

If they were to say buy $270M of LWIN bonds, then this is a great thing. Gets LWIN growing faster and builds business for QCOM. Also the return on the LWIN bonds are like 12.5% face, but more like 18% with discount. there are alot of them out there with 2006 calls, which would also give them yet another 22% on the money over the next 4 years. And if LWIN grows faster, the CDMA business grows faster, and perhaps LWIN could build out 1xEVDO sooner. those kinds of deals would make one heck of alot of sense.