As for the gold mine in the cesspit of Qualcomm, Abel certainly intends to get it.

If only I could get Qualcomm in this era.

That is equivalent to holding the hand of the mobile Internet in more than ten years.

Even if you no longer invest in scientific research in ten years, you can still collect taxes for another ten years if you hold Qualcomm.

It's better than chrysanthemum, even if the patents are mutually licensed.

In the end, it still has to pay some patent taxes to Qualcomm.

Abel came here this time, naturally for this purpose.

And Irving Jacobs, the founder and chairman of Qualcomm.

There are other Qualcomm managers who naturally hope to get investment from Abel.

Mainly because in the past two years, Gao Pass has been really miserable.

The stock market fell from more than 35 billion US dollars to 3 billion US dollars in one year.

This kind of soul-stirring plunge is rare in the history of world stocks.

This is the main building of Qualcomm.

After browsing through it, Abel was accompanied by Owen Jacobs.

Everyone came together to the large conference room on the eighth floor of Qualcomm headquarters.

After everyone sat down, Owen Jacob had not yet spoken.

Abel said straight to the point:

"I think Qualcomm is a good company. But I won't hold it in the near future because it will continue to lose money."

Abel's rude and direct words made the founders and managers of Qualcomm present look ugly.

Owen Jacob was even more worried that Abel's words would spread outside.

Originally, the market has been very unfavorable to Qualcomm in the past two years.

Otherwise, Qualcomm's stock price would not have fallen so dramatically.

If these words of Abel, the "Moses of Finance", were spread to the outside world at this time.

The market will definitely collapse immediately if there is not much information about Qualcomm.

By then, the stock price is expected to halve again.

If this situation happens two or three more times, Qualcomm could declare bankruptcy and delist.

Fortunately, there are no outsiders in this conference room except Abel and Gaotong.

Owen Jacobs is only worried that Abel will say this to the outside world, and is not worried that people at Qualcomm will leak this sentence.

"Mr. Smith," Owen Jacobs said in a gentle tone, fearing that he would dissatisfy the young man and let him talk nonsense outside.

"Then when do you think Qualcomm will be able to get out of this predicament?"

However, Abel avoided the issue directly, telling Owen Jacobs:

"I won't own Qualcomm in the near future, but Smith Capital can help Qualcomm."

Irving Jacob’s words above were actually intended to elicit some kind words from Abel towards Qualcomm.

This is in case the media really leaks it.

You can also use the good things Abel said later to offset the negative things Abel said about Qualcomm before.

Unexpectedly, Abel said this, Owen Jacob immediately asked with interest:

"Oh, Mr. Smith, how do you want to help Qualcomm?"

"Bonds."

Abel said: "Qualcomm can issue PERCS bonds to Smith Capital."

PERCS bonds are actually convertible preferred stocks with upper and lower limits.

"PERCS Bond"

Owen Jacob understood what Abel meant.

That is, Abel is not interested in Qualcomm now, but is willing to lend money to Qualcomm.

And he's interested in Qualcomm's future.

So does Qualcomm need a loan now?

So needed!

Qualcomm is currently valued at approximately US$2.6 billion on the stock market.

But their liabilities have reached $2.2 billion.

At this time, Qualcomm was in such distress that not many banks and financial companies were willing to lend it money.

But Qualcomm knows that its scientific research cannot stop at all.

Once it stops, other competitors in the industry may surpass it.

By that time, Qualcomm's first-mover advantage will be lost.

That's not far from Qualcomm's complete death.

Qualcomm needs funds most now.

Gritting his teeth, Owen Jacob said softly: "What about the conditions? What are the conditions of Smith Capital's PERCS?"

"The annual interest rate is 7.85%, which is much less than most PERCS on the market."

"The conversion period is two years, and when the price per share of common stock does not exceed US$10.8, the conversion price is US$4.5, corresponding to Qualcomm's price-to-book ratio in 2000 of approximately 1.7 times and its price-to-earnings ratio of approximately 15 times."

Abel continued speaking clearly.

"If the common stock price exceeds $10.80, the conversion price will be $10.80."

"That is to say, the yield of this PERCS bond is capped. In addition to the annual interest income of 7.85%, the investment income from common stock conversion after two years is up to 58%."

"In addition, I need the preferred stock to have a protection clause. If two years later, that is, in 2003, if the stock price of the common stock falls below $4.5, the conversion period will be extended for half a year."

According to this set of rules, Qualcomm will pay 7.85% interest every year for two years.

Two years later, if Qualcomm's stock price cannot rise above $10.8.

Then we need to sell the corresponding value of the stock to Abel at a price of 4.5 US dollars per share.

If it can rise above 13 and exceed US$0.8 per share, it can only be sold to Abel at US$10.8 per share.

This is equivalent to Abel signing a two-year investment and gambling agreement with Qualcomm.

Similar PERCS bonds are not uncommon in the United States and Europe.

For example, when Buffett invested in American Express in 1991, he also used the PERCS bond model.

Generally speaking, only listed companies like Qualcomm that are in extreme embarrassment can accept such conditions.

This is a kind of unfair loan sharking between enterprises when there is no way to borrow money and there is really no other way.

Abel smiled: "If you want, I can use US$500 million in funds to support Qualcomm as PERCS bonds."

After hearing this, Owen Jacob's expression changed.

Other Qualcomm executives present also had different expressions.

But most of them don't have very good expressions.

This is not because Abel's conditions were too excessive.

In fact, before Abel came.

Qualcomm has contacted various financial groups many times in the past year.

But most of the bank financing groups rejected Qualcomm's financing requirements.

A small number of banks are willing to use a PERCS bond model similar to Abel's support.

But the conditions of these banks are more stringent and the interest rates are higher.

As Abel said, the annual interest rate of 7.85% is indeed not high in this model.

Back then, the interest rate Buffett paid to American Express was 8.85%.

Those willing to give Qualcomm PERCS bonds offered interest rates of over 10%.

Thinking of this, Owen Jacob said in a hesitant voice:

"Mr. Smith, thank you for your conditions. But I need to report it to the shareholders' meeting. You should understand."

"Okay." Abel stood up with a smile: "Five months, within five months, this condition will be fine."

Owen Jacob nodded, his voice dry, "Thank you for your kindness."

"Well, let's do that." Abel nodded and stood up to indicate that he was leaving.
To be continued...