InterDigital Inc (IDCC)

[blueskywaves]

There you again with that new age valuation nonsense.

1) QCOM went from $108M in sales in 1992 to $3B in sales in 2002.

2) Diluted O/S went from a split-adjusted 312.5M shares in 1992 to 809.3M shares in 2002 or by 159%. By the end of FY02, at least 73% of QCOM's cash and investment account of $3.177B came from the issuance of common stock (options) since 1992.

http://www.investorshub.com/boards/read_msg.asp?message_id=1010462

3) Market cap went from a few hundred million dollars in 1992 to nearly $30B in 2002.

Following your simplistic logic that a company would be worth more if the dilution was less, QCOM should now be worth 159% more simply because the dilution rate during the last 10 years was 159%?

Using IDCC, its sales went from $40M in 1992 to $88M in 2002 -- or by 120% -- while diluted O/S went from 24M in 1992 to 55M in 2002 -- or by 129%. Following your logic again, IDCC should be worth 129% more simply because the dilution rate during the last 10 years was 129%

Of course not.