InterDigital Inc (IDCC)

[Desert dweller]

Except they can't buy back today since they are in possession of material news and it would be insider trading. They are the only ones who are privy to the terms sheet and if they buy back now, it would be trading on non public info IMO. After the news hits, I doubt if we will be trading at $25 and then that $100 million wouldn't be buying back 10% of the outstanding shares.

As far as the average dividend yield, how many of those companies who are currently paying 4% and higher are in jeopardy of cutting back or eliminating those juicy yields? IDCC if it were to start a dividend of a buck a share would be able to pay that and increase it substantially going forward IMO. You are correct, they need to evaluate all options but considering so far they have paid more on average to buyback the stock in treasury than the current stock price over the past 5 years, management hasn't been patient enough with shareholder money IMO.

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Or IDCC can take $100 million dollars and buyback 4 million shares at $25 which would increase eps by about 10% and that would be a permanent increase of about 10%.

mo