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

To: Gaffer who wrote (93472)	7/22/2010 3:35:44 PM
From: slacker711	2 Recommendations Respond to of 196642

Microsoft tried the one time special dividend back 8-10 years ago. It did nothing for the stock. A special dividend is never going to do anything for the stock. It is about the fact that the company can no longer earn a sufficient return on the cash to justify keeping it on the balance sheet. The shareholders can then determine for themselves the best course of action with respect to the money...perhaps to reinvest it in Qualcomm, place it elsewhere in the market, or to blow it all in Vegas. Think of it this way, if you and one other person owned all of Qualcomm and there were no longer opportunities to deploy the cash profitably, what would you want done with that money? Why would you let it just sit on the balance sheet? Qualcomm has reached that point in its growth. The fact that they need to put the money into equities says quite a bit about how they view their limited ability to invest the money into the core businesses. Slacker