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

To: Gregg Powers who wrote (12365)	7/14/1998 10:38:00 PM
From: Ramsey Su	Read Replies (2) \| Respond to of 152472

Gregg, OT does this remind you of the good old RTC days. For those of you who had watched midnight informercials - HOW TO BUY REAL ESTATE 10 CENTS ON THE DOLLAR WITH NOTHING DOWN!!!- these are the guys who know how to do it and they are definitely NOT doing any seminars in your neighborhood hotel this weekend. these are the guys who made out like a bandit during the S&L crisis in the US, buying pools of loans and properties at $500M or higher a pop. I expected that they would be over there but I didn't realize so early. The masses didn't even realize the obscene profits they made here in the US. I wonder when the Japanese people found out their neighborhood commercial building is now owned by Goldman Sachs, would a new round of nationalism kick in. Having said that, looks like the private sector is moving ahead to do their own "reform" without waiting for the government to get their fanny in gear. Ramsey TOKYO (Nikkei)-Foreign-capitalized securities houses and funds purchased bad loans with a book value of some 4 trillion yen held by Japanese financial institutions from September 1997 through the end of June, The Nihon Keizai Shimbun has learned. The bad loans, most of which are backed by real-estate collateral, have generally been bought for only 5% to 10% of their book value, in expectation of capital gains. Japanese banks and life insurers are eager to sell such nonperforming loans in bulk, in hopes of improving their financial standing. Seven to eight large foreign concerns have been particularly active in buying the nonperforming loans, making purchases with their own funds or money raised from investors in Europe, the U.S. and Asia. Companies buying the most bad loans include Loanstar Opportunity Fund Corp., a large U.S. real estate investment company, and major U.S. securities house Merrill Lynch & Co. Together, they have purchased some 1 trillion yen worth of real-estate collateralized loans. Goldman Sachs Group of the U.S. is thought to have purchased slightly more than 500 billion yen in mortgage-backed loans and some 300 billion yen in loans extended to failed nonbanks. Sakura Bank (8314) leads Japan's large city banks in sales of such loans to foreign firms, transferring some 400 billion yen worth in the year ended March. Other city banks have each sold off over 100 billion yen worth of such nonperforming loans. Major life insurers are estimated to have sold loans worth several tens of billions of yen. Bank of Tokyo-Mitsubishi (8315) sold some 100 billion yen worth of bad loans in June, and Sanwa Bank (8320) 15 billion yen worth. Dai-Ichi Kangyo Bank (8311) sold 200-300 billion yen worth in August. Fuji Bank (8317) and Industrial Bank of Japan (8302) plan to sell more than 100 billion yen worth of bad loans in bulk during the current fiscal year. (The Nihon Keizai Shimbun Wednesday morning edition)

To: Gregg Powers who wrote (12365)	7/14/1998 11:55:00 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 152472

Thanks Gregg for the correction. Isn't the attraction of cdma2000 so great that no discount is necessary? The value of the initial multitude of licences has increased because cdmaOne has been proven and there will be a huge market for those licencees to supply. New licencees should pay more than previous licencees because they have much less development and market risk. cdma2000 licencees should pay even more. The only reason to reduce cdma2000 licence fees is if the market growth would be too slow = there is an optimum fee schedule to maximize long run profit. Or in fear that competitors could develop an alternative [unlikely by the look of it] or in fear that the IPR will be stolen in a Janet Reno/European conspiracy [unlikely having given Irwin a Congressional Medal of Honor for Technology]. It seems to me that there will be an avalanche of cdmaOne sometime in the next one or two years as the gizzards cost, price of handsets, functionality and form factor and market reach critical mass. There seems little need for encouragement by reducing the IPR price further. What do you think - any way of calculating this? Are you confident Qualcomm will maximize long run IPR profit? Philip Merryman's 'give it away' morality seems contagious, but is a very confused morality and in fact counterproductive in terms of utilitarianism = greatest good for greatest number of people type idea. I'm quite nervous about it all. But am confident that Q.com's position is very very robust. Mqurice