badgert3 -- Regarding stock buybacks, management, as noted in the conference call, typically buys back shares by selling put options. The current price of $64.10 (around 11 am eastern time) is not, in my view, a bargain price that would justify a put option sale. You need a really bad market day, perhaps brought about by further turmoil in European economies, that would cause the price of QCOM and other shares as well to fall another 5 to 10 percent. If the shares fell closer to $61 and the company sold in-the-money put options with a striking price of, say $65, with expiration in October or the following January, then the potential benefits look very interesting.
Art |
