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

To: Jim Mullens who wrote (31116)	1/13/2003 5:15:26 PM
From: Art Bechhoefer	Respond to of 196568

Jim, you wrote about >>encouraging the firm to use equity rather than debt in their business expansion, etc. needs<<. My question is, if the company is encouraged to issue stock in order to raise capital, don't you think that would dilute the earnings on your own shares? In the past, QUALCOMM issued convertible preferred shares in order to raise cash (from private sources, so that they didn't have to register the securities with the SEC). Preferred shares with a guaranteed dividend are considered similar to bonds and do not dilute the common shares until conversion to common takes place. This allows a company to obtain badly needed capital without initially diluting its common shares. Would you prefer QCOM to just go out there and issue more common stock instead? Art