InterDigital Inc (IDCC)

[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

I don't believe that is how it works, but according to you, using actual numbers from this years first 3 quarters financial reports, IDCC bought 3,940,217 shares for $298,235,887.31, or $75.69/share in the stock buyback. Now you say to wrap up the 2024 notes they are going to issue 3.8 million shares for $285 million, which comes out to $75/share. Buy at $75.69 and sell at $75, sounds like a losing proposition to me.

Doesn't even take into consideration that they have been paying 5 years interest on that money or the original cost to borrow that money. Or, the fact that the original amount borrowed was $400 million and they refinanced about $270 million of that so that they could pay 3.5% interest on it instead of 2%.

So now I'm supposed to figure out why increasing the buyback makes sense so that they can do this all over again, and which will make the above numbers even worse because they will have to issue even more shares to cover the debt if the share price is over $109.43?

Oh, and about those short numbers. How many shares did you say IDCC was going to issue? How many shares did you say they needed to cover? I think we answered the question from the previous posts.

On another note, thought is was rather interesting that yesterdays closing price also came to exactly $109.43 after I brought the subject up on here. Makes you go, hmmm..........