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Technology Stocks : Leap Wireless International (LWIN) -- Ignore unavailable to you. Want to Upgrade?

To: gdichaz who wrote (310)	4/20/1999 11:07:00 PM
From: Mr. Sunshine	Read Replies (1) \| Respond to of 2737

In the QCOM conference call, the CFO said that they were taking a $3 Million loss on the cancellation of a PORTION of the Leap warrants to ensure Leap qualifies for the FCC auction. QCOM's justification was that Leap winning the bids would help CDMA acceptance in the U.S. (as if it needs help at this point) and increase ASIC and phone sales. What a "portion" is, I do not know. But I sure would like to find out. Did'nt QCOM have enough warrants to buy back 18% of Leap? At what level could QCOM own Leap so that Leap is considered a "small company"? Perhaps they cancelled enough warrants to bring their potential ownership to less than 5%. That's my guess. Steve P.S. Just did some quick math. WAGed most of the numbers, but writing off their cost basis of 13% of Leap could very well be in the neighborhood of $3 Million if the cost basis was about $1 per warrant. All this thinking is making my brain hurt. Since I own both QCOM and LWIN (from the spinoff) it would be about a wash for me anyway.