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

To: brational who wrote (24981)	7/26/2002 8:55:16 AM
From: JohnG	Respond to of 197228

Vesper or Pegaso

To: brational who wrote (24981)	7/26/2002 11:21:24 AM
From: pcstel	Respond to of 197228

The charge against earnings to reflect the lower value of QCOM’s investment in LWIN, is not part of pro-forma, hence is not a part of core operations. That’s why there is the QSI division in the first place, and why it is not part of pro-forma. ........ Qualcomm undoubtedly realized some value (and possibly actual gains, though I’m not sure—at one point LWIN stock was trading at $60). Of course it is not part of Pro Forma! That's because it's a LOSS! Just like it WAS part of Pro Forma when there was a GAIN to be booked! From 12/6-12/12/2000 exercised and sold about 1.25 milion options at about $31 per share. They then booked these proceeds INTO the Pro Forma. That's right! The one-time sale of equity was booked into the Pro Forma. Then they did it again 2 Quarters later. They sold just over 500,000 shares on the last few days of the quarter and again booked it INTO the ProForma. Qualcomm's reason for doing so! They claimed that one of Qualcomm's Core Business was Investing. And that a return on investment in LWIN should be included into the ProForma since it was a Core business! Hard to find another company that books one-time sale of equity into the Pro Forma! Of course they did so even after writing down their investment in Globalstar the quarter before, But, deleated the Loss on that Investment from the Pro Forma because management stated that. Globalstar was not an investment, but no longer a Core Business to the company... (Hint, 2 Quarters later Globalstar paid Qualcomm some 35 million dollars, and guess what.. Yeap! They included that into the Pro Forma again even after they stated that Globalstar was a Non-Core business 2 Quarters earlier) PCSTEL