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Technology Stocks : The New QUALCOMM - Coming Into Buy Range -- Ignore unavailable to you. Want to Upgrade?

To: manalagi who wrote (1041)	8/21/2007 11:33:07 AM
From: sag	Read Replies (1) \| Respond to of 9129

They have not done any short put for a while. When was the last time they bought back the share? Taken from QUALCOMMs latest Form 10-Q. Stock Repurchase Program. On May 22, 2007, the Company announced that it had been authorized to repurchase up to $3.0 billion of the Company’s common stock. The $3.0 billion stock repurchase program replaced a $2.5 billion stock repurchase program, of which approximately $0.9 billion remained authorized for repurchases. The stock repurchase program has no expiration date. In connection with the Company’s stock repurchase program, the Company sold put options on its own stock during fiscal 2006 that were exercised during the nine months ended July 1, 2007 requiring the Company to repurchase 2,000,000 shares of its common stock for approximately $89 million (net of the put option premiums received). Upon repurchase, the shares were retired. During the three months and nine months ended July 1, 2007, the Company repurchased and retired 3,063,000 shares and 6,077,000 shares, respectively, of the Company’s common stock for $129 million and $258 million (net of the put option premiums received for shares purchased during the first quarter of fiscal 2007), respectively. During the third quarter of fiscal 2007, the Company sold put options, with expiration dates varying from September 2007 to March 2008 that may require the Company to purchase an aggregate of 7,500,000 shares of its common stock upon exercise for $287 million (net of the put option premiums received). Any shares purchased upon exercise of the put

To: manalagi who wrote (1041)	8/21/2007 12:45:34 PM
From: Art Bechhoefer	Respond to of 9129

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To: manalagi who wrote (1041)	8/21/2007 12:45:38 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 9129

Regarding QCOM selling put options as a way of buying back shares, all we know is that the firm has $3 billion authorized for share repurchases. We won't know what, if any transactions have taken place until the release of the next financial report in October. I would assume that QCOM did some repurchasing (either directly or through sale of put options) on recent news. But if this was not the case, then my view of the fundamentals affecting the company would change. Put another way, if QCOM repurchased significant amounts of stock, it suggests the company thinks it will prevail on the key issues under litigation. If QCOM didn't buy back share, well, maybe the company is really worried about the health of its IPR. And if that is the case, then the fundamentals (i.e., the value of the patents as an asset) definitely have changed, and the stock is worth less than what one might have thought earlier. Art