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


To: rkral who wrote (31113)1/13/2003 12:56:11 PM
From: kech  Respond to of 196568
 
Ron - If you look at this post from SSB presentation in Sept. Thornely said the following:

"Closing, balance sheet is very strong. Cash position is 2.6 billion. Liquid position, 1 billion generated a year in operating cash flow. 800 million in commitments going forward. Looking to future expect to be free cash flow positive. In future considering options of what to do with cash."

I think that basically means they are thinking of paying a dividend anyway. If the tax change goes through it is even more likely. Given the cash, and cash generating power, Qualcomm is a potential "dividend paying company".

But I can take the hint and pass on the tax discussion for awhile without getting Dr. No involved. <g> Tom

Message 17950711



To: rkral who wrote (31113)1/13/2003 5:06:00 PM
From: Art Bechhoefer  Read Replies (1) | Respond to of 196568
 
Ron, QCOM is a dividend stock as defined in the proposed tax changes. In the proposal, retained earnings that are reinvested are called "deemed dividends," meaning that they retain their tax exempt statis and can result in an upward adjustment to the cost basis of the shares, reducing the amount of capital gain subject to income tax.

Art