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


To: Jeff Vayda who wrote (11923)7/1/1998 10:47:00 AM
From: kech  Respond to of 152472
 
Jeff- My interpretation is that SpinCo conforms to this alternative that you suggested:

"If the outfit will be a partner in
developing the associated infrastructures and is able to share in the profits of the systems
then I see greater potential."

Also, about the dividend. Does this mean that it will be treated as a fully taxable dividend just as if it were cash? If this is the case, and one does not sell SpinCo -- what happens to the basis on this stock? It then becomes the value of SpinCo on the first day traded? Just wondering. Actually I don't think I will mind the taxable dividend since I think I can offset the obligation with margin interest expense that has been accumulating...