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

To: Jim Mullens who wrote (126159)	12/23/2002 5:25:18 PM
From: rkral	Respond to of 152472

Jim, That transaction amounted some $475 Million for about 75 Dot Wireless employees ($6.3 million per employee). Relating that sum to Qualcomm’s 6,500 employees yields a tidy valuation of $41.2 Billion, somewhat in excess of today’s Qualcomm market cap of $30.6 Billion. Attempting to apply that $/employee metric to QCOM is nonsense IMHO. Ron

To: Jim Mullens who wrote (126159)	12/23/2002 5:36:05 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 152472

One of the ironies is that QCOM patents actually have a NEGATIVE value on the books. That's because QCOM expenses its R&D costs, but the accounting system has no way to value the resulting patents. So we see the expenses, which go to the liability side of the balance sheet, but no resulting assets. On the other hand, now that we are seeing increases in royalty payments, based on the patent portfolio, we get a return on assets that is greater than it should be. As long as QUALCOMM keeps adding to its strategic investments, it may be some time before the true impact of the royalties is felt. But once strategic investments begin to return more than their cost, then we'll see what the royalties do for return on assets, and we'll be able to compare this figure with similar data from companies like Nokia, Motorola, etc. Art

To: Jim Mullens who wrote (126159)	12/30/2002 11:25:58 AM
From: hueyone	Read Replies (1) \| Respond to of 152472

I’m sure Huey will be most grateful for your patience in regard to this most exhausting effort as I’m sure he is sure to now become a Qualcomm investor after digesting your recent most informative posts. I do appreciate the posts here, and the discussion about how QCOM has come from nowhere (over an 11 year period) to put themselves in the position of possibly becoming the dominant player providing the technology driving wireless transmission of data. However, the current stock price is too high for me to buy. This is not to say the stock price couldn't get higher though. Best, Huey