Replies to post #31568 on InterDigital Inc (IDCC)

[jmspaesq]

Zip:I'm NOT HCs Financial Advisor OR A Psychic!

Zip, seriously if you were opposing counsel I would have leaped to my feet "OBEJCTION: calls for specualtion as to the state of mind of another."

So how would I know what HCs reasons are?

I can give you a list of possible reasons though.

Reasons HC might have sold include but are NOT limited to:

o To buy a new house

o To pay for his kid's college or grad school or a trip to Europe/Semester abroad

o To finance a vacation

o To pay for a divorce settlement

o To buy a new rolls

o To diversify his own portfolio/financial planning

o Because he had options that were going to expire and new options on the way

o To realize some profit now without that meaning there will be no profit in the future

o ETC ETC ETC there are myriad reasons--many of which are none of my business and I am not privy to!

Gee zip, insiders have to sell their shares sometime or other don't they?

The shares are not cash. Everyone needs cash.

They have to sell options sometime otherwise they expire.

If you read the proxy you were told that it was expected that insiders would exercise some of their outstanding options.

I guess if you were holding options, you would allow them to expire?

This was a 10(b)5 sale. That is part of a planned sale that was planned at least six months ago.

It wouldn't be surprising if HC has periodic sales planned as part of his 10(b)5 sale plan.

I don't think his sale will in any way affect the morale of his employees.

The morale of his shareholders shouldn't be very important to him.

I've said before and I'll say again: the share price especially in the short term does NOT affect the business of the company directly. Business can be great and the share price depressed. The share price doesn't affect whether other companies are going to sign licenses or make other deals with IDCC. The share price doesn't affect the generation of revenues (other than through the exercise of options) (or if there is a secondary offering or other equity deal in the works). In many ways and for many purposes the share price ESPECIALLY IN THE SHORT TERM is irrelevant to the success of the business! *(of course a low share price could affect a takeover, hostile or friendly OR M&A activity if stock swaps are part of the deal).

Where is HC leading the company?

When I look at the stock, I see that in a year the share price has more than doubled. I see that it has almost doubled since the beginning of the year. I see that IDCC has taken a leadership role in standards setting organizations and has made more than 1000 contributions to those standards. I see a settlement of the ERICY case--a 'watershed event.' I see three new licensees THIS WEEK! (well two NEW and the Sharp renewal). I see new patents being issued on a regular basis. I hear that the NOK and Samsung revenues are expected some time--sooner or later. I see IDCC executing a strategic plan and doing a darn good job at it.

That is where HC is leading us--to success, wealth and for those of us who can enjoy the first two--some modicum of happiness!

With all due respect IMHO it is YOU who sounds like the cynical one, NOT HC or his managers or executives or employees!

And if you think the sale is significant, then you should follow that analysis and make whatever decision your analysis tells you--sell if you think that's best, follow the analysis out the door. That's up to you. Personally I think this is making a mountain out of a molehill.

JMHO joel

[Learning2vest]

zip, sure Joel won't mind if I offer a comment on your question to him. Been watching the emotional reactions to insider selling for awhile now and have noticed that it's not a big deal on the threads for most stocks. It's a bigger deal here than anywhere I know of, and I follow a lot of boards. Not sure why that is true, but will try offering a couple of ideas that might lead us toward figuring it out.

How we feel about a piece of news is mostly determined by how that news fits into our own personal expectations according to Oprah and her Oklahoma sidekick(forget his name, but he is the big guy with all the answers). Maybe we are expecting IDCC executives to be investors like we are(i.e., your comments about why would Harry sell a share now if he thinks it will be worth more later?). IMO that's a pretty tight box to put them in because it eliminates a whole lot of other possibilities.

Maybe Harry really IS thinking of taking a salary when he sells some of his shares each year. That's possible when we look at how many he has been getting vs selling in the past few years. And at how many he still has for long term appreciation(i.e., maybe he sells some as salary and then thinks of the rest as investments like we do with ALL of our shares). The after tax proceeds from his sales in recent years might be about what a top exec salary package would be at comparable firms, and it would be the only "salary" he gets from IDCC.....

There are lots of considerations with insider selling for sure, but one thing certain is that with the huge emphasis companies have given to granting stock options in recent years there is going to be a lot of insider selling ahead. Mike Dell, Billy Gates and his sidekick Stevie Ballmer, the QCOM leadership team, Larry Ellison and pretty much everybody else who got "paid" with stock options are selling like there is no tomorrow.

Selling "some" is one thing IMO, selling "out" is another. So far none of the IDCC insiders(other than maybe Lomp when he left to start up his own firm), have shown any signs that they are selling out, so why be concerned about insider selling at IDCC?

Options and insider selling are two sides of the same coin. Let's not suffer them as two separate issues if we have to suffer them at all. I sure don't so far.

[GE_Jim]

I think your being too hard on ole Joel. I'm sure Harry has more than earned his keep with the nearly 5 million dollars that Harry got over the last 90 days. Not to bad a pay for a qt is it. The only confusing part for me is I've been a shareholder for 4 years and I still don't know why were paying him anything. But that’s just me. I' m sure he's earned the 5 mil this qt, just wish he would tell us all what he's done. May be important.