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

To: Mr. Sunshine who wrote (28800)	11/12/2002 2:52:06 PM
From: John Carragher	Read Replies (1) \| Respond to of 197015

If they pay a dividend doesn't that open the stock up to more investors and mutual funds that will only invest in stocks that pay dividends.

To: Mr. Sunshine who wrote (28800)	11/12/2002 8:38:46 PM
From: cfoe	Read Replies (1) \| Respond to of 197015

IJ has in the past said ... that dividends and stock buybacks were unlikely as they would rather use the cash for strategic investments. That was then, this is now. Thornley has said on the last two earnings conference calls that strategic investments are going to begin declining. In a recent interview (late September, early October) Thornley said dividends was not out of the question in the future. It is clear to me QCOM is moving in this direction. A commitment by the Republicans, with Democratic support (there are a number) for a change in the tax laws regarding dividends would "seal the deal" in my opinion.

To: Mr. Sunshine who wrote (28800)	11/13/2002 10:28:33 AM
From: RalphCramden	Read Replies (2) \| Respond to of 197015

A dividend seems to be an acknowledgment that this is not longer a hot growth company. I am pretty concerned that it is not a growth company anymore anyway, just based on the trajectory of this company and this industry over the last 15 years. The problem with QCOM not being a hot growth company is that a 35 PE is not justified for a company which is growing less than 35%/year or so. For years, QCOM has told us that the smartest thing they can do with their money was to invest it in their business. If now they tell us that they don't need any more money for new investments, they are telling us that they have entered the next stage in their lives. And that stage will not be associated with 35% growth, which means the stock price will go down. (Or stay flat while slow earnings growth chips away at the PE over a few years.) Further, a dividend as compared to a stock buyback is a very good indication that the stock is overvalued. Even QCOM thinks it is too expensive to buy back. IMHO, Ralph