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

To: Art Bechhoefer who wrote (118908)	5/17/2002 9:34:52 PM
From: KyrosL	Read Replies (2) \| Respond to of 152472

Art, I don't dispute that QCOM has done very well for those that bought it before mid-1999. All I am saying is that the bulk of its tangible book value, primarily its cash pile, was derived from stock sales, both from the original IPO and secondary offerings (remember the one in 1999?) as well as option exercises by its employees. As a business QCOM produced relatively little tangible wealth (i.e. retained earnings.) per share of its stock. Of course, its intellectual property and engineering expertise may produce lots of tangible wealth in the future, and its investments in various wireless ventures may prosper. I agree that no large cap telecom stock did better than QCOM for its long term shareholders. But that was not the topic I was commenting on. My comment was specific to your idea that a good measure of QCOM's performance as a business would be to look at the change of its book value from year to year. I simply pointed out that such a measurement is meaningless for a company whose employees receive and exercise lots of stock options and which has a large price to book ratio. Perhaps a more meaningful measurement is retained earnings per share. Kyros

To: Art Bechhoefer who wrote (118908)	5/18/2002 10:36:06 AM
From: gdichaz	Read Replies (2) \| Respond to of 152472

Art: Thanks for your clear statement of how long term ownership in Qualcomm has paid off in practical terms. Re:<<QUALCOMM could have sold the same shares to most of us at a higher price (if they had a direct purchase plan for shareholders).>> There have been suggestions that Qualcomm should buy back its shares, but that has always seemed to me a poor second best to keeping its powder dry for other uses internally or for strategic moves to advance CDMA worlwide. But what are the pros and cons of a "direct purchase plan for shareholders", such as a rights offering? Look forward to your views following the analysts' meeting Wed. Best. Chaz