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

To: gdichaz who wrote (25744)	4/1/1999 9:49:00 AM
From: Art Bechhoefer	Respond to of 152472

There is a difference in investment quality of QCOM and GSTRF. From the very earliest years, QCOM generated a great deal of cash flow from its OMNITRACS systems, which helped cover its development costs for CDMA. GSTRF, on the other hand, while being helped considerably by its two principal owners, QCOM and LOR, has floated a tremendous amount of debt to cover its satellite launchings, and has no revenue stream at all until its system becomes operational, hopefully this fall. Therefore, GSTRF shares are highly leveraged and, to put it mildly, speculative. The junk bonds, on the other hand, which raised much of the needed cash for satellite launchings, are in effect guaranteed by QCOM and LOR, neither of which would want to see a default, and thereby lose the value of their common stock investment on their balance sheets. Those who have deferred income accounts, such as a Roth IRA, might want to consider an investment with a yield of about 16 percent and total return closer to 23 percent. . .