InterDigital Inc (IDCC)

[The Count]

Pay a dividend to beat the shorts

Brilliant. The shorts have to pay the dividend and they will run and cover. Or maybe not.

Ever heard of something called ex dividend date? On the date that the stock no longer carries the right to the dividend, the stock price drops by the amount of the dividend payment, all other things being equal. Buy and sell orders are adjusted to reflect the dividend amount. The short is in the same position as he was before. He has to pay the dividend, but his short position has just appreciated by the same amount. Ooo, but he has to come up with cash so he has to cover. If these shorts are big enough to move markets, then they may have a few dollars hidden in their mattresses to finance the execution of their strategy.

There is one way to beat the shorts, and that is to make the business successful. For IDCC that means signing 3G licenses with the big players. I believe they are working at it, and the ITC is the method they are using to bring it to a resolution.

I am glad management is not trying to fight the shorts other than doing their best to execute their business plan. Don't waste resources battling the ebb and flow of the ocean's tide, build a good boat that will sail through anything.