Thread regarding Qualcomm Inc. layoffs

blue vs white

Like many of you, I have to choose White vs Blue. I've read with interest some of the analyses comparing the merits of being laid of by SM vs HT. However, I think that the decision is more fundamental. If we, the shareholders, don't fix QC, it will fail. And failure comes fast in this industry. Remember Nokia and Blackberry. This is a capital intensive business. Once the tail spin starts, it is hard to pull out.

QC is a business which has been languishing for years. You could have sold stock in 2012 for more than today, and that is with the stock buoyed by the Broadcom offer. The executives, in the meantime, have been lining their pockets. Since 2012, SM alone has been awarded hundreds of millions. For what? Where is the linkage to performance? Has he no shame?

SM has had plenty of time to right this ship. Now, at the eleventh hour, he makes wild promises to massively cut costs and lift earnings. Why does he think this is credible? And if we happen to believe these promises, what in his past conduct suggests he will be able to sustain higher performance?

If QC enters a death spiral, everyone will ultimately lose their job. The executives appear to comfortable to continue remunerating themselves handsomely all the way down. And the board appears comfortable to watch them do it.

This is the promise of a white vote.

A blue vote will surely lead to layoffs. But it also promises better leadership. BC has a track record of no b---s--- and making money. It has a track record of successful acquisitions. It is not mired in endless legal action from its own customers.

Those of you who remember the old QC remember the amazing things our engineers could build when unencumbered by endless layers of corporate b---s---. Voting blue just might free up engineers to innovate again.

Ultimately, make up your own mind. But I'm leaning to blue because anything beats circling the drain.

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| 1191 views | | 5 replies (last February 2, 2018) | Reply
Post ID: @OP+RrB1rLp

5 replies (most recent on top)

"Ultimately, make up your own mind. But I'm leaning to blue because anything beats circling the drain."

Hock Tan and his band of merry men will bring absolutely zero innovation to the Industry. What do you think funds massive RnD? Patents and IP. We are falling to the cheap a-- Asian business model - rip off everything and pay nothing, and ignore patent infringements.

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Post ID: @6gmy+RrB1rLp

Summary - white is right.

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Post ID: @1zjo+RrB1rLp

Can someone post a summary of the last post?

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Post ID: @jhj+RrB1rLp

Current management is a rendition of the bad luck bears, but the grass isn't always greener either. We went through the SRP and came out of issues with China and and had nice momentum, which accelerated after the NXP announcement. And then Apple smashed our parade. Is the board right? Will we resolve that on favorable terms in the next 12-18 months? Maybe.. That is the main, most immediate pillar in their retention argument. If you believe that is going to happen, then you should vote white. Why? Because Broadcom is going to lock you into a price based on today's situation. Regulatory approval is going to take forever (as bad if not worse than NXP). If Apple settles and Qualcomm gets that in cash under a Broadcom board, you better hope they return it immediately as a dividend. Otherwise that is just flow through to Broadcom and you got the tiniest little taste with the few shares of stock they tossed into the deal.

The second pillar is the roadmap and innovation. Broadcom will massively cut back in R&D. They will still make strategic investments, but where are the long term bets going to come from? Not inside the company, but from more acquisitions. This strategy has worked for them, but eventually it will collapse under its own weight. The current company is bloated and we'll find out over the next couple years if our licensing model survives. I'm willing to stick with the current strategy post NXP integration because I'm excited about where the combination can go.

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Post ID: @onu+RrB1rLp

No B

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Post ID: @umr+RrB1rLp

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