Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: hueyone who wrote (126127)	12/21/2002 10:07:13 AM
From: Jon Koplik	Read Replies (1) \| Respond to of 152472

(Repeating) answer to QCOM "low" equity number : Message 18294853 To:hueyone who wrote (125818) From: Jon Koplik Tuesday, Dec 3, 2002 10:22 AM Respond to 125823 of 126127 Re : "enjoy having John (S.) around to challenge their assumptions" -- at the risk of starting a gigantic "cat fight," I want to tell you when and why I put John S. on "ignore" -- A while back, those of us who read every post here were subjected to probably at least 100 posts along the line of : "If Qualcomm is so great, how come Qualcomm's book value (today) is so low ?" A certain person was responsible for endlessly asking the question again and again, AND ignoring what I thought was a very simple and short (and obvious) answer (posted by me). That answer was : IF Qualcomm decided to sell their entire IPR (intellectual property rights) holdings to another company today, then Qualcomm would probably "book" a gain of something on the order of tens of billions of dollars. They would immediately lose about 1/3 of it in U.S. corporate income taxes, possibly have no business future, BUT ... would be able to make the Qualcomm balance sheet have a nice high book value. Despite this explanation, the posts complaining : "Where's the book value ? Where's the book value ? Where's ..." went on and on and on. That was when I engaged the "ignore" feature. Jon.

To: hueyone who wrote (126127)	12/21/2002 11:54:55 AM
From: techlvr	Read Replies (1) \| Respond to of 152472

If you are going to try to make a point, at least be full and honest. QCOM has 1.4B in cash and cash equivalents, plus 1.4B in short term investments (bonds), plus about .9B in receivables. This excludes the value of their fully paid-for real estate in San Diego, etc. This means they have at least 2.8B in actual investable cash. It takes lots more money up front to develop hardware (QCOM) than software (MSFT). QCOM is entering its rapid $ accumulation phase after 11 years of R + D and investing in supportive companies to carve a market from scratch away from the dominant European standard. This would be about as hard as Apple suddenly coming up with an OS that was guaranteed to take over 100% of the PC market from MSFT in a 5 to 10 year period. No mean feat. They will be picking up billions each year in cash. Given these facts, please re-argue your point for me. Thanks