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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: bananawind who wrote (10910)	5/27/1998 1:06:00 PM
From: bdog	Read Replies (2) \| Respond to of 152472

In the absence of input from Gregg (and other smart people) how about some reactions from the dumb and the restless. I don't get how you can "spin off" the part of the company that is holding back QCOM (or at least its share price) and even more that there "will be a market" for same. Hack an undervalued company into two pieces and both parts increase in value by virtue of the separation? Isn't the parent still going to be funding the child? Aren't competitors going to realize that its really still Qualcomm? Does this strike anyone else as financial sleight of hand? What am I missing?

To: bananawind who wrote (10910)	5/27/1998 3:30:00 PM
From: Gregg Powers	Respond to of 152472

Jim: I think you have described the transaction's merits accurately and succinctly, missing only that the value creation achieved through the wireless investments will now be visible to Wall Street rather than being hidden on QC's balance sheet. I would note that the transaction also demonstrates management's concern for shareholder value. The equity losses could have become a real issue to reported EPS over the next few years, plus QC was being constrained from recognizing its full manufacturing profit on related equipment sales. The spin-off should therefore be materially accretive to reported EPS. I haven't spoken with Harvey yet, but I will be happy to pass on the substance of his thinking once our conversation takes place. Best regards, Gregg