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

To: JGoren who wrote (80975)	10/13/2008 6:59:43 PM
From: David E. Taylor	Respond to of 197309

Maybe you're right, they could just hold these, as they could hold a bunch of investment stuff that's underwater that they don't need cash for right now and hope value recovers. If they do, "unrealized losses" will go up significantly in next 2 Q's reports....! Also, remember that approximately 85% of revenues are derived from overseas operations, and 6.3 billion of "undistributed earnings" (=cash) were sitting overseas as of 6/29/08. That's one reason US tax rate has been down around 19% to 21%, and repatriation of these earnings to US for corporate use would incur corporate tax at US rates, unless we have another "corporate tax forgiveness holiday" like we had back in 2002 or 2003 or whenever it was. I'm not sure enough of tax laws to opine whether they can buy back stock or pay dividends out of offshore cash hoard without incurring US tax liability, but I doubt it. But they do need to use cash for running company, dividends, stock buy backs..I haven't analyzed cash flow from operations to see if it's enough but likely it is, but again most of it is overseas... All food for thought, answers will emerge in due course, better heads than mine are running company! David