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

To: Maurice Winn who wrote (93450)	7/22/2010 12:43:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 196634

Mq:--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 Suppose QCOM pays a one-time extra dividend of $1/share. That means paying out $1.6 billion, which reduces shareholder equity on the balance sheet by 1.6/19.9, or 8%. But the extra dividend would, in fact, INCREASE the stock price, probably by about 8 percent. So PJ loses very little, and he may even gain when the value of his options shoots up on the prospect of receiving the extra dividend. He can sell his options, rather than convert them, and take a capital gain instead of a dividend, which may or may not be too his advantage (not being his tax consultant, I don't know his personal situation). Bottom line is that the company has too much cash in relation to its growth rate, its need for internally generated funds, and its type of business, which uses less bricks and mortar than a business that owns all its own production capacity. Art

To: Maurice Winn who wrote (93450)	7/22/2010 1:58:29 PM
From: Jim Mullens	1 Recommendation Read Replies (1) \| Respond to of 196634

mQ, re: Shareholders- LT v Short- ”If that's true, Paul doesn't understand what a shareholder is. Somebody who buys a share today has exactly the same entitlement as somebody who has held shares for 25 years and plans to hold them another 25 years. In all due respect, we have to differ on this point--- the objective of the US equity markets. + Should they be the tool of the momentum crowd (manipulators / speculators / fast- high velocity traders), or + Investors – those “investing” for the longer term. Paul, I believe, empathizes with the plight of Q’s long term investor base, being whipped up / down by the fast trading crowd based on short term results / guidance. He now also appears to be taking action (long awaited) on the growing the bottom line commensurate with a growth companies characteristics. I also asked him his thoughts re: our equity markets being dominated by high velocity traders- …He does not think this is positive for society in general.