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Re: loophole73 post# 28784

Thursday, 05/29/2003 4:16:03 PM

Thursday, May 29, 2003 4:16:03 PM

Post# of 435833
Loop .. Good post except for mentioning the TSs .. I was into them big time on the basis that the tax write-offs would be for the period promised. Remember the government allowed these as incentives for people to invest where it would do "the country the most good." (As I recall mine were all "Section 8, i.e., low income housing" ..I think that was the term). Then tax reform came in and they were eliminated which was OK, but they didn't "grandfather" the ones in existence at the time and guys like me had very large annual payments still to make for several years with no corresponding tax benefit! Some people just refused to make the payments which caused some of the projects to go under for lack of funding and created a big legal mess for the ones not paying.

this management group has created "O" plans without shareholder approval in the past and if an emergency arises before the next ASM, I have the utmost confidence that they will do it again.

(My bolding.)

That is a source of comfort since if #2 is voted down the chances of getting something with shareholder approval in the near future is slim and none IMO. One of my primary concerns is that I don't want at this point to see a company I'm invested in to be put at a competitive disadvantage on the basis of "contemplated legislative reforms." Those reforms have a way of never happening or ending up significantly watered down and/or containing grandfathering clauses. I think there are many companies planning on that and acting accordingly and some of them may be IDCC's competitors. I can't remember exactly what happened and when, but I believe it was in President Kennedy's administration that he asked one or two industries to voluntarily reduce their exports. Sure enough a bunch of companies did it for the good of the country but an even bigger bunch didn't. The next year the government made mandatory export quotas for all of the companies in those industries and they set the number at the level each company had exported the previous year! So the "good guys" got screwed. I've been pretty leary of "voluntary reform" ever since. It is not out of the realm of possibility that the same could happen with the "O" word. Trying to read "governmental tea leaves" is orders of magnitude more difficult than attempting to read "company tea leaves" even for a company like IDCC.


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