InterDigital Inc (IDCC)

[jealmc79]

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.

If the stock price is $130 (or any amount over that $109.49) when the warrants are exercised at $109.49 it is considered the same as dilution. Thus the chart on page 29 of the 10q. Just like it doesn't make much sense to be driving up the price by buying back stock over $110 to settle $109.49 warrants. In the end, it is just a big shell game played by the big boys to get their money out of you.

The real question is, why does IDCC even need to mess with this when they have more than enough cash of their own. Luckily interest rates went up and now they might be coming out ahead temporarily. That seems about to change though.