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dont know the exact details of the strike price...couldnt find it online....i do know as part of the issue idc hedged out the stated strike to a higher price...by doing a collar options trade [buying a lower strike option and selling a higher strike option]....im pretty sure both conversion prices of those issues are a good bit higher than we are now...i seem to remember a number in the 80 dollar range....right now they look look like they are pretty smart financial operators...that changes with the markets
did some research....last year idc issued a new convert with a 3.5 coupon...pre-refunding the issue coming due in 2024....which has a 2.0 coupon....the bonds due in 24 have roughly 18 month to maturity...the issue is 400myn....the "positive carry" on those 400 million is at least 200 basis points[more like 250]...with t-bills above 4.5%....that alone represents 8myn+ in extra income which goes straight to the bottom line...with 29myn outstanding shares....thats almost 30 cents per share
does anybody have access to see if the analyst at B of A is still listed as an analyst?...some body told me No....but he wasnt sure
one observation here as an old bond guy...idc has been often criticized for issuing bonds for seemingly little reason...although reminding the capital markets that we exist every now and then is a good enough reason for me......they are now in a situation where they have so called "positive carry" on their debt...ie...the interest being paid is lower than the corresponding interest being received by sitting in t-bills...so we got that going for us too!!!!...lol
OH MR. B of A....COME OUT AND PLAY!!
yeah baby.....the best bad market tech stock there ever was!!!!!......
in the not too distant future....share-count could approach 25myn with the increased buyback....at that point $120 per share...would be around 3byn....doesnt sound like too much to me....given that it comes w/ cash and a long term proven track record and is still at the cutting edge of wireless technology and with new lines of business(video)....plenty of companies with none of that ...trade for a whole bunch more
monterey....usually in a situation like this....a prospective "new" chip maker....might want to purchase some patents that pertain to the subject at hand...as a strictly defensive measure....with only 28 million shares outstanding......defense is available for a decent price..
dont have the information i used to have....why we up over 60 in the after hours.....is it 5 o'clock charlie time again??....teehee
wonder what our boa/merrill analyst has to say about these recent developments....you would think a guy so boldly negative when he came on the scene....would come out and say something....either reconfirming his initial analysis of idc's future prospects....or saying that maybe i wasnt exactly as well informed as i should have been when i made my initial report....and i am reassessing the current future prospects for idc....or something to that regard.....we're waiting!!!!
idc once again showing its chops as....THE BEST TECH STOCK TO OWN IN A BEAR MARKET FOR TECH STOCKS.....im pretty excited about what we heard today on many fronts....havent felt that way in a long time about this company....happy new year!!
looks like our boys are matriculating the ball downfield....a few observations....arbitration has had favorable outcomes for idc in the past...i welcome it in the samsung negotiations....licenses with consumer electronics companies are a positive as we capitalize on the IOT strategy.of the past five years...and lastly....WILL THERE BE ANY STOCK LEFT???......happy new year!!
hi glen....just saw this...do you know if there were big open options positions going into that expiry?...that seems pretty large....it would be interesting if that trade was really an arranged block cross.....merry christmas everybody!!!
ALL RIGHT,,,,,THE FIGHT IS ON....WHAT YOU SAY NOW MR MERRILL LYNCH ANALYST WHO STARTED US WITH A SELL FOR NO GOOD REASON......WE'RE WAITING...MR JEFFRIES JUST FACIALED YOU!!!!
vegas....you bring up a good point about interest on the cash balances....many have been critical of idc's issuance of convertible debt....while at the same time holding substantial cash balances well in excess of the debt...we are now at the point where idc is experiencing "positive carry" on its debt...versus short term interest rates!!
lets call a spade a spade here...this "pr***k" from mother merrill [i was born there]....has an agenda...and its to keep the price in check....i know a rat...when i smell a rat...and this cheese eater has orders [Q]...what the heck does he have to gain with a minor player from a forgotten company w/ a 1.2 byn mkt cap...while working for one of the biggest banks in the business ...a short sale order for a million shares?....thats a laughable order in today's zero commission world....hold on to your shares boys...the fun's about to start again!!!...
sounds like good news to me!!!....
they have two convert debt issues outstanding...one is about to mature....they issued new debt in anticipation of the maturation of the older debt....nothing dramatic going on here....fwiw...they did get a better price for the new convert....than they would have today...lol
glen....didnt realize the shorts were so active recently....one of the problems with institutional ownership ...especially if held by a large index type funds...is that they freely lend their shares to any and all comers....one of the problems that the shorts have...is that they tend to get lulled into a false sense of security because they can easily borrow shares at a reasonable price...but with only 29myn shares outstanding...and a stock that by definition is not liquid ....and is no longer regularly flogged by traders....things could get out of hand for the shorts in a hurry WITH SOME GOOD NEWS....and btw....mobile data is still a growth business....one more thing....i looked at idc's headcount the other day...its around 500...i remember around 325...im assuming they havent hired too many management types in the last few years....so more engineers working on more stuff...thats a good thing
i guess you guys forgot the days of tom carpenter running the show when it came to analysts covering idc....although we dont like the initial salvo from this analyst...i cant ever remember us getting coverage from a major firm like merrill/boa....so lets be philosophical about this and realize....this guy has nowhere to go but up from here...lets hope the company is there to help him understand what the future is for idc......and he improves his rating on idc...this wasnt a totally bad thing that happened....the buyback is active....we'll be ok
im pretty encouraged by idc these days...i havent been interested in adding shares for many years...thanks to our new analyst....he's helped the price to "de-risk" over the last few days...still think the market for tech has a little more work to do....but im ready to add some over the next few months....idc has always been a great bad market stock...and was proving my point until yesterday
have we had any of the longer term analysts that cover idc make any rating changes lately....i gave up my bloomberg and cant follow it as closely
glen...why would they even bother...its a thinly traded stock...w/ low mkt cap....ole mother merrill doesnt really even sell individual stocks these days.....just doesnt make sense....unless they were urged to initiate coverage by someone.....and punted on first down.....what is analysts name...does he have any history with idc...thanks tc
dws....we are almost exclusively ex qcom guys at this point in the executive suite....is there anybody left from the old management?
glen....didnt the company say that they felt technicolor was the best acquisition interdigital ever made.....and they"ve made a couple of good ones over the years
vegas...maybe you should buy the convert....the embedded options in the convert are probably cheap.....and you get a rate of interest on par with the stock dividend
the reason you would sell your shares....is because you would own the warrants...therefore you would be transacting in the stock based on your ownership of the warrants...exactly what they would like to avoid
vegas...you just explained to the crowd....the exact reason why idc didnt sell the warrants to the public
vegas ...collars are sold to private parties as a whole....they are to act as insurance....if they are sold to the public....you never know what the heck the individuals are going to do from minute to minute with your insurance.....insurance is designed to sit on premium and die a harmless death..and thats exactly what has happened to the last three collars,,,,,if they seem cheap to you.....thats just about the whole idea
glen...your correct...nothing about the convert issue was any different from the past 3 or 4 issues...a convert was issued with a collar to hedge out any dilution at a premium above the strike price...that collar included the sale of the warrants at the upper band of the collar [106]...some leverage is not a bad thing when you have a steady revenue stream and a conservative expense stream...share count continues to be targeted at around thirty million.....which is gonna make a nice tasty bite for someone at some point at a price point of around 4 billion....spare change in some circles...but still meaningful for us!!!!...or not...lol
thanks glen....i always listened very intently when you shared your thoughts....wow...feels like old times.....happy memorial day to long lost friends!!!
thats him....he came to the meeting a few times
no definitely not...i met data rox several times over the years....it was someone from the area where the firm was and the employees lived
dave....one company still sticks in my mind....there was a guy here in the old days who was knowledgeable about the inner workings of idc and the industry....he always insisted the eventual buyer would be cisco....ill still go with that....anyone remember his name?
glen....im glad to hear you say that...you were always well informed on idc... i honestly dont keep up with idc nearly as much as the old days....any particular reasoning you can share with us?
hi dave...still have a small position maybe 10% of what i had.....weve been through all the G'S...i still think our stuff is very relevant...especially as we move further and further away from voice...with chipmaking moving back to the US...i think we are a good buyout candidate in the space...
hiya boyz...just checking in...saw the new deal....interesting that the markets are almost shut down right now and idc is able to get a deal done...doesnt look too bad to me...still looking for a buyout at some point...see the old gang is still here...looking back at the history of idc price movement...we tend to outperform in down markets....hope everyone is well,,,,tc