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

To: Jim Mullens who wrote (126132)	12/21/2002 5:00:53 PM
From: pyslent	Read Replies (2) \| Respond to of 152472

Jim, I'll give it a try. QCOM's intellectual properties are what allow QTL to do business and generate profits. One could argue that the value of the patents is the market cap that would have been assigned to QCOM had Spinco been spun off. I would estimate the economic value of the patents at any given time to be the (current share price - book value - ~$10 for QCT/QWS). The argument that that number should be added to the balance sheet really flies in the face of conservative accounting, IMO.

To: Jim Mullens who wrote (126132)	12/22/2002 12:09:27 PM
From: hueyone	Read Replies (1) \| Respond to of 152472

Hi Jim, There seem to be a number of people very interested in changing the subject of the discussion. Please let me sum up my conclusions regarding the original discussion I was responding to. In my opinion, and one only has to examine the 10ks to verify this, MSFT was tremendously more profitable than QCOM has been during its first 11 years of existence, and what is more, MSFT achieved this profitability on way less paid in capital than what QCOM was given to work with. Let's also recognize the fact that the market value of Microsoft's OS, as is the case with QCOM's IP, is not and was not reflected at market value in MSFT's Current Assets, so the stockholders equity figure net of paid in capital is a very good and valid apples to apples to comparison for both companies. In the case of MSFT, precisely because their IP is so valuable, cash flow resulting from this valuable IP began showing itself in significant increased stockholders equity net of additional paid in capital very early on in MSFT's existence. In the case of QCOM, however, after eleven long years, the conversion of their "tremendously valuable IP" into stockholder wealth in the stockholders equity section hasn't happened in a meaningful way yet, and the increase in QCOM's stockholders equity net of paid of capital, and especially the increase in stockholders equity net of paid in capital relative to the massive amount of paid in capital, has been rather minuscule. Disclaimer: Nevertheless, I am not claiming that past QCOM results are or will be indicative of future results. I highly doubt they will be, and if I thought they would be, I wouldn't be wasting my time reading this thread trying to get a better understanding of QCOM's future. Huey