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Re: bulldzr post# 291583

Tuesday, 06/15/2010 1:27:45 PM

Tuesday, June 15, 2010 1:27:45 PM

Post# of 432690
If anyone wants a dividend, here's what you do.

Sell 4% of you shares. You collect 4% in cash. Your holding is now worth 96% of what it was, however if IDCC paid out a one time 4% dividend, the stock price would fall 4% (all other things being equal), so it's just the same. In addition, you would not owe taxes on the whole 4% you received, but only the gain portion of the sale. You can do this at whatever % you like and as often as you like.

Printing more shares does not increase the market cap. Therefore the stock price would fall to make your total holdings worth the same amount (all other things being equal). This is the same problem that comes with stock option grants - dilution. If your theory was correct, why not do a 2:1 stock split and we all double our money!!! HOZAAA, Happy Days are Here Again...

The arguments for and against a dividend have been made. Here’s the best one (okay, mine) if anyone is interested, but rehashing the arguments here is not going to accomplish anything.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=46100965

If you feel strongly about it, contact the company and let them know. Let's keep the focus here on our expectations for IDCCs future so we can make intelligent investment decisions instead of repeated debates about management decisions that we can't affect. If you really want a dividend, I've shown you how to get it, so do it yourself and forget about getting management to do it.
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