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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 (21990)	4/29/2002 9:33:43 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 196979

Re: Junk bond investments. No wonder I like QCOM so much. I reached the same conclusion and started buying junk bonds about two months ago. At least one rationale for buying junk bonds is that this investment would show a return for the QSI segment, offsetting other QSI losses. If nothing else, this will make the segment information in the financial reports look better. Junk bonds are not necessarily high risk. The term "junk" applies when cash flow is insufficient to cover interest payments, forcing a firm to sell off assets or issue more stock in order to raise cash. Obviously you wouldn't sell stock at these prices. Some junk bonds carry relatively low risk if the bonds stand in front of other obligations. It all depends on the particular company. In the telecom area, Nortel has a reasonably good junk bond with a yield to maturity of close to 18 percent. Then again, Nortel has some management problems, so maybe the company won't recover as quickly as it should. Art