Replies to post #22458 on InterDigital Inc (IDCC)

[arthritis65]

fmilt...frank that is the point...most shareholders no nothing about the intellectual properties and the intricate evolution of these new products...if someone tried to tell me what air interface did in engineering terms...i would think i could get one at lowes 40 psi...how would you and i know if an aquisition is good or not? big problem on this board...if you dont understand the complexities of how money is generated you are whistling dixie thinking you can tell idccmgmt what to do.....lot easier owning the company that makes butterfingers...you could easily run that one....JMHO...art

[blueskywaves]

IDCC would be a less attractive stock today if not for M&A. IDCC was a TDMA-only IP shop until they merged with Schilling's CDMA-only IP shop in the early 90s. At that time, the wireless industry was still making the transition from 1G (analog) to 2G (digital) and carriers were still choosing between the heavily favored GSM, a TDMA variant, and CDMA, the US underdog.

The rationale for this merger was sound. Schilling's CDMA-only IPR would enhance IDCC's ability to generate income from its TDMA-only IPR while allowing IDCC to hedge a CDMA future. Litigation, of course, sidetracked IDCC for much of the 90s.

Regarding buybacks, I disagree. I think that IDCC has to keep on improving the liquidity of its stock so more institutions can establish larger positions. As has been discussed many times before, institutions will drive most of this stock's sustained appreciation now that the 2G litigation risks have been removed.

[blueskywaves]

IDCC would be a less attractive stock today if not for M&A. IDCC was a TDMA-only IP shop until they merged with Schilling's CDMA-only IP shop in the early 90s. At that time, the wireless industry was still making the transition from 1G (analog) to 2G (digital) and carriers were still choosing between the heavily favored GSM, a TDMA variant, and CDMA, the US underdog.

The rationale for this merger was sound. Schilling's CDMA-only IPR would enhance IDCC's ability to generate income from its TDMA-only IPR while allowing IDCC to hedge a CDMA future. Litigation, of course, sidetracked IDCC for much of the 90s.

Regarding buybacks, I disagree. I think that IDCC has to keep on improving the liquidity of its stock so more institutions can establish larger positions. As has been discussed many times before, institutions will continue drive most of this stock's sustained appreciation now that the 2G litigation risks have been removed.