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

To: DanD who wrote (93452)	7/22/2010 12:32:19 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 196650

<Why wouldn't buying up and renting spectrum could turn out to be a huge money maker?> Qualcomm makes money on licenses and chipsets. Everything else they do, they lose money. There are exceptions to this pattern, but they are just exceptions to the general pattern. They should focus on the consistently profitable activities they have demonstrated competence in, and avoid the temptation to dabble elsewhere. The best way the enforce that discipline, would be a higher dividend. Companies that commit to returning 50% of profits to shareholders, have to think very carefully, before they gamble on the next exciting "huge money maker".

To: DanD who wrote (93452)	7/22/2010 12:37:03 PM
From: A.J. Mullen	Respond to of 196650

Cash is different: it can be distributed to shareholders. I don't know, but I suspect spectrum is not owned outright. It's more likely a lease, an asset whose value diminishes with time. Paul Jacobs was open about getting out of handsets, "because we sucked at it." They're as good at managing money and providing wireless service. I think they should get out of those businesses too. Ashley