InterDigital Inc (IDCC)

[NukeJohn]

I think management got the message from the institutional investors during this CC. It's pretty clear that a combination of buying back shares (at these bargain basement prices), and announcing a dividend, will get the stock price headed in the right direction. Since stockholders and management both benefit by a higher share price, I think we will see management taking positive actions that are consistent with analyst comments in the CC.

Also, today IDCC management was put on notice that any aquisitions outside of their core competency would not be looked at favorably by institutional investors. IDCC management probably knows there was a recent attempt by Rambus shareholders to cancel managements' options program. In the Rambus case, the vote failed at the ASM, but it was too close for comfort. Had a couple of large institutional investors voted with the individual shareholders, the vote to eliminate managements' options program would have passed. It appears to me that IDCC institutional investors are ready for management to take actions to boost the stock price, and if they don't see progress, they will take action.

The shareholder revolt was a shot across the bow for Rambus, and I doubt IDCC would like to face a similar attempt. If IDCC's management sticks to their knitting and gets the deals done with Nokia, Motorola, and Sony/Ericsson, they can get the stock price up to levels that will make everyone happy. Even if the deals are at less than optimal royalty rates, it's time to get paid on the existing technologies so IDCC can concentrate on newer technologies that solve the bandwidth problem. All IDCC has to do is buyback shares, issue a dividend and keep the litigation pressure on. I think that's what they'll try to do.

NJ