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Gamco, the fee has not changed, but the size of availability has shrunk.
my3sons87, IDCC can recognize in the 3rd and 4th quarter any previous monies from Lenovo that they have held back. Tai ( B of A) will be crying again at the next quarterly press conference.
jealmc79, I might be 1 of those people...
la-tsla-fan, If you PM me I will tell you about a company I am accumulating 100K shares in. I am currently about 80K . Doing it through options.
jealmc79, give me your theory as to how they are going to make any money through this 5 year plan.
jealmc79, maybe you do not understand a short position. When you short you are locked into that price. You will get margin calls until you convert the bonds or convert the warrants. Then those shares are gone to whoever you shorted them to. I am not sure how deep the pockets are as most the shorts are in the $80 area.
tnyellowtomcat, A person can only stay short as long as they can cover the margin calls.
Badgerkid, The important takeaway from the short interest is that since 7/15 short interest has been around 5M. The high was only around $123 so whoever covered the 600K decided they had enough and ate a big loss. Another word to the wise do not play Alabama...
Badgerkid, Yes I believe that is correct. A true tell would be if and when they authorize additional buyback money.
Paullee, On 5/6/22 IDCC authorized $100M more buyback SEC filing 5/27/22. On 5/24/22 IDCC did their bond refinancing SEC filing 5/27/22. On 8/4/22 SEC filing IDCC mentioned in the Q that they bought 1.2 M shares for $74.4 M in connection with the refinancing of the bond.
Amrwonderful, If you remember 2 to 3 years ago in May the company bought 1.1 M shares from a hedge fund in one trade, so it would not surprise me that one of those big blocks have gone to the company.
jeffree, very good to hear from you.
amrwonderful, Private message me.
tnyellowtomcat, It currently is about 5 cents per share per month. This month the borrower also pays the 40 cent dividend.
badgerkid, we are at max pain. No shorts are profitable at these prices. I checked before I posted that there is only 20K left to borrow at the end of today.
IDCC short interest 4,65 M shares. Up 210K
tnyellowtomcat, I think the video is new to this contract. It might be bigger than we think with all the Youtube videos...
MirageWitch75, My deepest sympathy to you and his family. I enjoyed posting with him.
my3sons87, I like the appeal. In the premarket IDCC traded over 200 shares at almost $120. When the market opened it started to sink and continued most of the day which is why I guessed someone did not like what was said at the appeal. It could be the tone or substance of the judges questions. On a lighter none IDCC has 6 form 4's sells out after the market for a total of lees than 5 shares...
I am guessing that someone did not like what they heard in the UK appeal.
Gamco, there are no open contracts in the June 120 puts so the idiots at Zach's say the implied volatility is high because I ask $10 for the puts. I could make the implied volatility high for any number by asking too much according to Zach's...They could say the same thing for the 40 puts because the ask is $2.15....
teecee56, The price was $102.59 for 1.397M shares, 1.403 M shares , 51K shares and a bunch of smaller trades. It was off exchange so it could be anything. The share price is lower than the conversion. It is also possible that the company bought them as they did almost 2 years ago from a hedge fund.
2.95M shares were reported to the ADF as off exchange trades.
Today's volume almost 3.6M shares.....
teecee56, 5 O'clock Charlie took 28,400 shares at $110.65 for $3.142M
Teecee56, I banned myself from posting since 12/29/23 as I figured no one cared what I had to say. I talk to several posters on this board regularly. Gamco, there was an article on Apple versus Vertex over a 14 year fight that could possibly caused the selloff and/ or an analyst reiterated a sell in my opinion. I still have all my shares. Lumpy3 asked about my current price target. The company says $7.50 to $8.50in earnings. Remember IDCC still has $86M to recognize from Lenovo. Should Samsung, Lenovo, Vivo ,Oppo or IDCC signs an AI license I expect a number that starts with a 2. Back to lurking....
jealmc79, I guess life is good on planet jealmc79
badgerkid, In the last 2 years they have bought back 5.4 M shares up to November 1, 2023.
jealmc79, in your world Mr. X buys the convertibles and takes the stock and does not want to sell. Mr. Y sold IDCC the calls. IDCC calls in the option. Where does Mr. Y get the stock as institutions own over 100%. Not only that Mr. Y sold IDCC the 2027 calls. He now has to come up with over 20% of the company. Why would IDCC bother with a Dutch Auction? They could just buy calls. A year ago May IDCC bought over 1 M shares from a hedge fund. Instead IDCC could just buy calls. Theoretically IDCC could buy the whole company by buying deep in the money calls. The only true call in this are the warrants.
jealmc79, IT IS NOT A CALL OPTION
jealmc79, NO IT DOES NOT. When the bonds convert, they choose either the money or the shares. If they choose the shares IDCC keeps all the money.
jealmc79, If the bonds are converted the $126M is IDCC money. They do not pay it to anyone.
The simplest way to understand it is the bond conversions are conversion price (which goes to cash on conversion) + hedge ( whatever the stock price is on the day of conversion minus conversion price ) . Then you get $109.43 times the number of warrants exercised. That is how you get about $110 per share.
jealmc79, I meant to say 2022 to date. The money comes from 1.6M warrants plus the hedge money. So you are effectively getting about $110 per share.
jealmc79, IDCC started 2023 with 30.7M shares as of November 1 the share count was down to 25.4M. They bought 2.7M+ at $73 in the Dutch Auction. The 5.3M shares that they bought most were bought below $90. If all the 2024 warrants are exercised and include the hedge money IDCC will receive about $285M. They will have to issue about 3.8M shares. Do you now understand why they increased the buyback to $300M and continue to buy?
jealmc79, If you buy back the total of shares that convert it DOES NOT dilute. The warrants are a different issue as the company is owed $109.49 per share exercised and once again if they buy back equal number of those exercised it does not dilute. Since the bonds are hedged, the hedge pays IDCC the difference between the convert price and the price on the day they convert. (example $110-$70 or $40 per share) The above is for the 2024 bonds which can exercise after 5 more days above $103 closing.
jealmc79, how would anyone know the price to short at? Do you do it at $80, $90, $100 if you did you are getting margin calls. It makes more sense to sell the bonds as they increase as the stock goes up. The 2027 bonds are not convertible until June 2025 under certain conditions. Have you ever done it? You have to have all the cash of the current price in your account or you pay daily margin interest. I personally would not want to pay 18 months of interest. I personally believe that Goldman Sachs or their customer own all the bonds and warrants. When IDCC issued the 2027 bonds I tried to buy $5M but none were available.
jealmc79, explain to me what debt IDCC has that does not go away upon conversion of the bonds. Explain to me how shorting the stock increases the rate of return for the bond holders. Since the bonds convert at $70 per share they currently trade at above 60% over par. Meaning a $1000 bond trades over $1600, You do realize IDCC has hedged the bonds up to $125?? Since the shares are issued from treasury and every share they buy back goes to treasury the more shares they buyback prevents dilution.
tnyellowtomcat, as of close there was still 200K shares available to borrow.
Triple Witching volume for IDCC over 1.7M shares now.