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

To: DaveMG who wrote (11929)	7/1/1998 11:26:00 AM
From: Jon Koplik	Respond to of 152472

Dave - the 1 to 4 spin-off ratio has nothing to do with the predicted approximate value (and/or starting trading price) of the new security. (Although, mathematically, it implies the spin-off cannot be priced at $10,000 a share (and other high numbers)). (It has to be worth between $0 and roughly $14, but could be anywhere in there). Jon.

To: DaveMG who wrote (11929)	7/1/1998 11:32:00 AM
From: Ramsey Su	Read Replies (2) \| Respond to of 152472

Dave, the market sure looks confused and so am I. Before the market opened this morning, I thought this would be good enough news to drive it up a few points. The way that I see it, QCOM is spinning off the "money losing" components so aside from book value, QC's financials will actually look better going forward. Since very few investors look at book anyway, the QC stocks will probably remain the same. Further more, I don't know of any analysts who is projecting any earnings for the spinoffs. The net effect is QC share holders receive 1 sh of spinCo for each 4 shares of QC. This is almost a total freebie. QC shareholders can either sell it, assuming there is some market for it, or just put it away for grandchildren education or whatever long term goals. Gregg, do I make sense? Ramsey