Qualcomm Inc (QCOM)

[dwdkc]

The inclusion of Q in this article betrays an overly broad-brush, superficial approach and cuts into the credibility of the author.

No doubt there are some games played with this by many tech companies but it is easy enough for someone to evaluate the significance of the Q's writeoffs. What's remaining is strictly a balance sheet issue and is insignificant relative to their cash hoard. The operating results are pretty easy to follow and the street gives them credit for the most part.

I don't really like the idea of expensing options because the valuation of them will fluctuate so much that it will be hard to avoid whiplash trying to keep track of them. I don't see them as anything other than dilution to the extent they are in the money and need to be tracked on the balance sheet. If they are clearly disclosed then I think the investor is best off.