InterDigital Inc (IDCC)

[blueskywaves]

Where we part company is over the numerator. In order to make your argument for defeat as strong as possible you reject out of hand any chance that these options might motivate management to work harder and smarter to maximize future earnings to the shareholders' benefit.

Great point! That's the same kind of tunnel vision we just saw during the latest gripe sessions about insider selling.

The most amazing thing about the negative reaction to the insider selling after the settlement was that the malcontents kept on rejecting all the available data that showed that insider activity during the last 2 years DID NOT precede any decline in IDCC's price since IDCC's stock returned 78% in 2001 and 50% in 2002!!!

Yet people kept on insisting that insiders sold because they knew something! And some even asked IDCC to further narrow the selling windows for insiders beyond that required by the SEC!!! Is it any wonder why IDCC ignored them?

The questionable assumption made, of course, was that the stock could have gone higher after the settlement if the insiders hadn't sold.

A similarly questionable assumption is being made now that the stock could go even higher if the options are not issued!

Apparently there are people who actually want IDCC to have an EPS-based multiple instead of a sales-based multiple during the early stage of its growth. These are the folks who don't seem to understand that sales-based multiples result in higher market caps for growth companies that still need to finance their growth plans.

Notice the pattern? LOL.