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QCOM Drumbeats Share Buyback to Distract from Dilution Via Options and ESPP
Posted by: JK_VI (IP Logged)
Date: January 22, 2014 12:56PM

QualComm has fantastic technical capabilities and financial ratios (net margin and growth). Yet whenever I look at their earnings reports or share repurchase announcements, I notice they only mention good big cumulative numbers like below ffrom Sep 11, 2013 announcement
    "Since these programs began in 2003, we have returned over $25 billion to stockholders through a combination of stock repurchases and cash dividends"

On contrary, if you carefully notice, shares outstanding has gone up by 120+ million shares! ==> 120M * 75 = 9 B$ (or more depending on how you count repurchases and issuance adjustments). 10K provides some information but it's too complicated to make sense of it without complex spreadsheets and efforts.

As usual such press-releases do not include needed info on issuance of shares count and price (mix of options, M&A, employee purchase, etc)

Hence in interest of fair and full disclosure, I have been trying to get info from QCOM-InvRelations regarding this but they don't respond OR just redirect to 10K. It would be very helpful if companies published year-by-year simple info & graphic of "Shares Issued, impacting/diluting shareholders"

SEC should mandate companies to publish year-by-year simple tabular-info (as this impacts/dilutes shareholders returns)
 * Shares repurchased count, weighted average price (as repurchase $$ may be ~misleading and/or over-stating reduction in share count, depending on price)
 * Shares/Options vested/exercised count, weighted average price
 * Employee Purchase Plan shares issued count, weighted average price (rare few % of companies give 15% discount)
 * M&A shares issued count, weighted average price
 * Dividend paid and # shares on which it's actually paid (include special options)


Does anyone knows a good source to get this info? 

Thanks,

JK



Stocks Discussed: QCOM,
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