InterDigital Inc (IDCC)

[The Count]

Great post Desert dweller

Obviously if you look at that answer today, it was a terrible idea. But if you take the traditional long view on investing which is what a buyback is for, let's ask that question 2-4 years from today. Bookmark your question then on 1/1/10, let's see if it was a good idea. Also when I say take the traditional long view on investing, I mean a measurement period in years not days like some of today's traders look at it.

I guess given the choices of buy back, investing in other companies or sitting on the cash, at these prices and when it was in the 30's and the feeling of our prospects at the time, my choice is buy backs.

If you throw in the option of a dividend, then I would have chosen a dividend when the stock was in the 30's. In the 30's a dividend would have been a better use of cash since they were buying at the multi year highs. Paying a dividend of $.10/qtr would have conserved cash which would have allowed more options and at these levels they could have instituted a very large buy back. At today's prices I much rather see a buy back because my feeling is we are way undervalued long term.

Management obviously thought we were undervalued in the 30's and probably expected Sammy to be resolved by now which would have kept us easily in the 30's and probably higher. Had that happened the buy back in the 30's would have looked smart.