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

To: Art Bechhoefer who wrote (126120)	12/20/2002 7:28:58 PM
From: Stock Farmer	Respond to of 152472

Art, at FYE 1999 the company had 2.9 Billions in equity. At FYE 2002 they had 5.4 Billions in equity. Care to explain how the company achieved a 2.5 Billion dollar increase in shareholder equity over the past three years? Hint: they generated 400 Million in profits over this time, so 2.1 Billion dollars came from somewhere else. Let's say you and a thousand lucky friends attend a meeting. While you are there a deft pickpocket takes what he can from all of your pockets and piles it on a table at the front of the room. After taking one third for his troubles. If he then announces that you are the lucky beneficiaries of this huge pile of wealth it's not like you'll all be leaving the party with more than you came with. Although if it was a QCOM stockholder's meeting, apparently they might think so. John P.S. Huey is correct.

To: Art Bechhoefer who wrote (126120)	12/21/2002 9:59:32 AM
From: hueyone	Read Replies (2) \| Respond to of 152472

>>600 million dollars of shareholders’ equity<< Hmmm, they've got nearly $4 billion in cash, yet you're saying they have only $600 million in equity? Art, I said that eleven years into its existence that the Qualcomm business had generated about 600 million dollars of shareholders equity net of additional paid in capital, and I was even being generous was that statement. Try this: look at the "Stockholders Equity" section in the balance sheet and pay special attention to “Paid in Capital” and “Total Stockholders Equity”, and then notice what a huge percentage of “Total Stockholders Equity” is comprised of “Paid in Capital”. Here is a recent balance sheet: edgarscan.pwcglobal.com Look at the change in book value per share since the company first went public. Since most of the gain in book value explained simply by additional “Paid in Capital” rather than gains from business operations, this gain in book value is unimpressive. they've got nearly $4 billion in cash. Look at the balance sheet again; QCOM has 1.4 billion dollars in “Cash and Cash Equivalents”, not 4 billion dollars in cash. Huey