InterDigital Inc (IDCC)

[postyle]

D_dweller:

Let's say you invested in a mutual fund that was charging you 10% in management fees. Would you continue to invest in this company?

Wouldn't that decision depend on how the mutual fund has performed vs. its peers and/or benchmark(s) ???

As it stands, many mutual fund investors currently invest in funds that pick their pockets to the tune of 10% or more. No, not a 10% management fee of course. More along the lines of 5% front-end load, 2% expense ratio (including 12b-1 fee, etc), high turnover rate which leads to excessive taxable distributions.

Anyway, I wouldn't want to invest in a fund like that if there was a comparable fund out there in the marketplace (similar charter, objective, target benchmark, etc.) without the high costs.

Using the mutual fund example to illustrate your point with IDCC's option costs doesn't really work. For starters, IDCC is extremely unique (size, revenue sources, specialized sector). And with the performance of the stock over the last two years, well... I think you catch my drift.