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


To: slacker711 who wrote (81211)10/21/2008 2:26:13 AM
From: ihavenoidea5 Recommendations  Respond to of 197798
 
“Nokia will be paying something less than the 1.5% rate to Qualcomm on a forward basis as part of the 1.5% rate will be amortized from the $2.3 billion [that Nokia is paying up-front.]"

Well, Tiernan from Barron's answers my question: "...as part of the 1.5% rate will be amortized from the $2.3B."

Or does he? That is, I just wish I could believe he was correct. If he can't get the $2.5B correct, why should I believe that his "...1.5% rate.." is correct? More important is this correct?: "the 1.5% will be amortized from the $2.3B"? Thus, is he wrong about the "...amortized from the..."? Also, is he wrong about the $2.3B? And if he is, why should I believe his something less than the 1.5% rate is correct, either? So is anything he says correct?

Thus, with the payment behind, future cash flows will look better net for Nokia than Qualcomm."

Is that correct? How can future cash flows look better "net" for Nokia than Qualcomm? Qualcomm isn't paying Nokia any cash in the future. Moreover, Qualcomm will still be receiving, according to Tiernan from Barron's "something less than 1.5%" running royalty. Isn't receiving cash, "... something less than 1.5%" more future cash flow for qualcomm and less for Nokia since Nokia is paying it and qualcomm is receiving the cash? ihavenoidea.