Replies to post #247892 on InterDigital Inc (IDCC)

[Dishfan]

One thing to not do with your excess cash:

From the QCOM release today:

The distress in global financial markets has continued to suppress the value of our marketable securities portfolio. As a result, in evaluating the recorded values of our marketable securities at December 28, 2008, we determined that $388 million, or approximately 3 percent of the recorded values of our cash, cash equivalents and marketable securities, were other-than-temporarily impaired. In addition, at December 28, 2008 and January 23, 2009, we had net unrealized losses on marketable securities of $1.1 billion.

Most corporations maintain liquid cash in low risk, short term securities - not marketable securities that can suffer $billion losses or complete write-offs (QCOM's description of "other-than-temporarily impaired" is hilarious). Hopefully, InterDig will realize their talents do not include investment management.

[dmiller]

Splitting the stock creates more liquididty which in turn is more likely to attract more institutions. Buying back more shares will just make it more difficult in this area.

[mickeybritt]

The Count

Would you be upset if IDCC spent 135 million and retired 5 million shares? Would that not make the stock appreciate about 10 plus percent. Would it make you mad if IDCC just made in 12 months 40 million if they bought puts and didn't get the stock put to them? How many years will IDCC be in a position with Nokia most likely going to license and the stock goinng higher to take advantage of the utilization of calls and puts than right now. Never in the history of the company has it been any better. I think it would be the wisest thing IDCC could possibly do. It would be different if they wasn't sure they was going to see a huge input of cash above what they have. Now you take the cash IDCC is taking in plus the 40 million and they could retire stock buy stock and sell the calls if they just wanted to take in more funds and then deliver the stock. I could see IDCC making at leat 50 to 60 million off of options alone. You would have to break my arm if I was IDCC to keep me from exercising option activity right now.

I would like to hear from others why this would be bad for IDCC or if they also think it would be good.

Just my opinion.

Mickey