Replies to post #8000 on InterDigital Inc (IDCC)

[spider69]

Great Post Loop, I printed and will keep in my office as a reminder of what this is all about as far as I am concerned...bravo to you

[mickeybritt]

Loophole

Your comments about management and their getting big salaries and bonuses and stock options should be justified if they get Ericsson doesn't sit well with me.

Let me use this analogy, you are on a baseball team and the team is going to play in the world series, and every day this superstar who may hit the home run to win the series, after you get dressed to play the game rifles through yours and all the other players clothes and steals your money, are you going to be mad as hell and want it to stop, or say heck he has a chance of hitting the home run that will win the world series and if he does that its O.K. he was taking my money for all these games.

The dillution of shares goes on into perputuity, the lesser stock price every year is paid by the shareholders and it will never end. The only resoloution is to repurchase every option granted to every officer and board of director and the stock returned to the treasury. If the officers does a good job pay them in salary, and then if they are not happy find someone who would do a good job an be content with a reasonable salary and CASH BONUSES if they exceeded in the reasonable expectations of the company. This sure sounds simple, and for the life of me, I didn't know that cash was a bad way to reward people. Cash hurts not one investor never ever, but options is a disease that isn't curable, the pain just grows with each issuance of a new option, and the cancer spreads.

Mickey

[beattheclockmn]

Loop:

If ERICY believes they have to pay IDCC for 3g, please comment on why the following is not a win/win way to resolve the pending case. If 1.5% is a reasonable rate for 3g, the parties could agree to a 1.75% and also set a reason rate for 2g and then calculate what they owe for 2g based on that rate. ERICY would be given 10 or 15 years pay off the 2g debt. Then IDCC agrees that for every dollar of 3g revenue they actually pay us, we forgive 25 to 50 cents of the 2g debt. IDCC would also have to get some upfront payment, either an advance on 3g or an initial installment payment on the 2g debt. ERICY gets to save the cash it needs and saves face on it's rights offering because they can say we aren't really paying anything for 2g because we were going to have to pay the 3g payments anyway. IDCC gets a vital 3g license and a 2g rate to take to Nokia et al.

Althought I know this is simplistic in regard to details, I would aappreciate any comments on validity of the general concept.

James

[firerocket77]

Loop


I also thought the Ericy trial was key and said so in July of 2000.

http://ragingbull.lycos.com/mboard/boards.cgi?board=IDCC&read=85957

[Bill Dalglish]

loop Your post 7999 is refrigerator door calibre. Right there next to the grocery list.

Your loooooonnnngggggg term perspective is appreciated!

Complaints about compensation packages based on a 1 or 2 year perspective -- or a lousy current stock market -- or slower than anticipated rollout of 3G -- are ludicrous. Your post puts much in context.

Thanks!!

Bill

[Desert dweller]

Loop, there is a major difference between IDCC management and the instances you pointed out in your post. From your post:

"I handled a matter for a guy who worked the first five years at Compaq for literally no money and stock options. Once the company got off the ground, it was obscene what he was worth. Ray Kroc's secretary worked two years for stock only and became a millionaire. These things happen."

When IDCC had less cash and their cash flow prospects were not that good back in 96 & 97, I would not have a problem with management working for lower salaries in exchange for options. That is what happens in a start up type situation. We are no where near that situation now.

In your examples both employees worked for literally no money and then were rewarded with options. Harry is Chairman of the Board. A board chairman is not supposed to be a full time employee. If they are then they are then usually hold a second title which is usually the CEO. Harry is not and has never been officially the CEO. His responsibilities are not supposed to be running the day to day operations of the company. Even if it was that way, he should not be paid for his services in stock especially to the extent that he is. Now going on to others in management.

I don't care what walk of life you are in, there is no way you could say with a straight face that our management team is anywhere near your examples of working for no money. They are highly paid in cash for a company with minimal contracts and only 300 employees. It does not take as much to run a company with 300 employees as it does one with thousands or tens of thousands of employees. Management should be paid for the work they have accomplished to date with bonuses to be paid for RESOLUTION of the major unresolved events; Ericy, Nokia & Samsung. At that point if they are resolved favorably then they should be given bonuses. Unfortunately they have already been given these huge bonuses on top of very large salaries in comparison to other companies of their size. But this management wants to be paid as if they are a fortune 50 (not 500) company and they will also expect huge bonuses when it is all settled.

Unlike your examples our management has not given up a thing in return for the options they have bestowed upon themselves. They have taken very big salaries and on top of that they have taken huge amounts of stock from us. (notice I didn't say steal). When all is said and done if the stock explodes as I hope and think it will, I will be very happy but it will not change the fact that this management has gone way over the top in terms of compensation.

[technical]

Three cheers for Loop,

Me matey, I was in the courtroom when longo-farty blew that infamaous stinky and closed the stock for a day.

I didn't realize that the doctored exhibit whas the the main reason for the way he viewed the judicial crew of the Minnow with such disdain. But I could tell he didn't like us.

I wonder how my life might have been different if the we had won?

AAAUUUUGGGHHH

Technical

[ziploc_1]

Loop

I have read and reread your post 7999. I have been long IDCC since November 1999 and I bow to your more complete experience with the company.
Perhaps the most important part of your post is the idea is that we will collect for 3G even if we lose Ericy. If you assume that this idea is correct, the value of IDCC shares has to be in excess of its present market price EVEN FACTORING IN A LOSS TO ERICY. To put it another way, the market has already discounted a loss to Ericy. This defies reason since the odds are that IDCC will prevail in the Ericy case. Perhaps I am missing something. I have been in the market for a while but I can't remember a situation quite like this.

Zip