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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 (93440)	7/22/2010 11:56:50 AM
From: Maurice Winn	7 Recommendations Read Replies (2) \| Respond to of 196644

If that's true, Paul doesn't understand what a shareholder is. Somebody who buys a share a year ago has the same entitlement as somebody who has held shares for 15 years and plans to hold them another 15 years. < Paul’s concern disfavoring a special dividend centered around rewarding long term shareholders. His thinking being, a one time large dividend similar to what MSFT did would not necessarily target long term shareholders, only those currently holding shares or purchasing before the dividend was granted --- (i.e. with the share price falling after the payout). > The idea is to maximize returns to shareholders. That's those shareholders who own shares today, not next year. Somebody who might buy them next year from me is totally irrelevant to what we do today. Here's the problem. Paul is paid in stock options and he gets his money from the share price going up. If he pays out the cash now, he will find the share price goes down by the same amount [near enough - it might not go down quite as far as the company will be more attractive because it would show recognition of shareholders as being the owners of record]. If the share price goes down, he will find his stock options less valuable. The planned tax increase is very very large. It seems unlikely that taxes will be cut. Either move the whole company to Bermuda or China or somewhere with low taxes or pay out the money. Paul needs a pay decrease anyway. He'll be happy to work for less money. He is paid in family legacy and status. That's good enough. There is no need to selectively reward long-term shareholders or stock option holders. Stock option holders are paid to increase profits, not market capitalisation by swindling shareholders out of their hard-earned money. Mindy wants a high share price. I prefer a lower share price and payments. Mqurice