Danny Detail, I appreciate your thoughts
My point about trusting management or my kids is that while I do trust them, I don't feel it’s appropriate to give them everything they want just because I trust them. They need to demonstrate need, not just want. Sometimes my view of what is fair or important may honestly differ from theirs. They know that too, so they may ask me to trust them when they think my conclusion will be different from theirs. If they have the information I need to make my assessment and will not or cannot give it to me, I’m not going to assume in their favor.
As far as selling if you don't have absolute faith in management, I don't understand this. There is a wide spectrum between brilliant, moral management and stupid, dishonest management. Secondly, many of us believe that stock price can rise or fall based on factors beyond managements ability. A mediocre management team can get great results in the right situation. I happen to believe that even if IDCC’s management is not the best, it is certainly good enough to turn our 3G licenses into ongoing revenue streams. That will lead to a much higher stock price. If I was all knowing, and knew that many management teams could get a 1% license on 100% of the market, and knew that the current IDCC management will only get 0.5% on 75% of the market, does that mean I should sell? Hell no. The choice on selling or not is based on future price expectations of the stock. Management is a very important factor, but it does not trump all others. I’ll sum up my belief of the ability of an organization to have great success with mediocre management in two words – Barry Switzer.
To avoid misunderstanding, I do not know if IDCC management is great, good or mediocre. My opinion is good, but until 3G is a done deal, I don't have a strong opinion. I think they are honest.
The Count
