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Bogus Management


Gregmal
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In relation to the QCOM?AVGO deal-

 

I was a bit surprised today. How does QCOM reject such an obvious value creating event for it's shareholders when it's done nothing but fall all over itself and destroy shareholder value over the past several years? Especially when the reasoning is that the bid "dramatically undervalues the Company". I've learned over the years that it really doesn't matter how undervalued a company is if the management team is incompetent and unable to unlock this for shareholders. Where do management teams get off making statements like this? QCOM may have been undervalued, but these guys have shown zero ability to do anything about it. Now, an event comes along that unlocks some/most of that value, and these guys all of a sudden think that could/can do better? Unbelievable

 

No position in either FWIW

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Guest Cameron

I own a stake in neither but the move looked more political than for the actual company. AVGO has Apple backing and most likely pressured AVGO to attempt the deal because the lawsuit would most likely be over if QCOM is acquired by AVGO.

 

I don't know if that tells you what Apple thinks of their chances of winning.

 

Also its rather easy for them to reject, since they are two big companies in the space they just have to cite anti-trust and call it a day, given the company was worth $70 a share prior to the announcement of the lawsuit with Apple I doubt there will be much outcry from shareholders unless AVGO comes back with a deal they literally can't reject. $70 a share was a little low all things considered.

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The rejection itself wasn't surprising. It probably is just a maneuver designed to bump the price. But nonetheless the arrogance of some of these guys is crazy. QCOM has lingered in the 40's/50's to low $60's through a massive tech bull run. These guys have not really succeeded with anything. Their business plan has shown few positive results, and none where it matters; for shareholders. IMO simply coming out and scoffing at a 40% or so premium to where the stock has lingered and simply dismissing it as "undervaluing the company" without supplying any sort of credible plan on how you(management) can do better(especially in regards to how you can do better when you've had years of opportunity yet havent done jack but now all of a sudden will...) for stockholders is reprehensible. IMO the most useful thing they've tried doing is buying NXP, and even that they can't seem to do right.

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