InterDigital Inc (IDCC)

[blueskywaves]

You may not agree, but I think it is also a fact that dilution is bad for shareholders.

Corporate governance has become the hot issue during this bear market, which started on 3/10/2003, so I can see where you're coming from, but the fact of the matter is that you can't view the issue of dilution in a vacuum even in a bear market You just can't.

As you can see clearly during IDCC's turnaround stage, which started with the 1999 Nokia deal and ended with the 2003 Ericy settlement, dilution WAS necessary. There was no choice.

Now at the start of its growth stage, the issue of dilution is more complicated. The best way to view this is through the prism of risks.

Most people take all kinds of risks the way they gamble. They start reducing their bets when they're winning and start increasing their bets when they're losing. That's the telltale sign of a losing strategy.

Superior risk takers, on the other hand, selectively choose their spots so they can increase their bets when they're winning and reduce their bets when they're losing. That's the telltale sign of a winning strategy.

Wouldn't you want IDCC, at the start of its growth stage, to start developing a company culture that exhibits superior risk-taking characteristics?

Of course, you do. You just don't know it yet.<g>