blueskywaves, you are correct
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.
The merger was done because it was a good situation for both companies. I just don't want IDCC to feel the need to be active in M&A just because it has a nice fat bank account.
I'm still not onboard with the need for a larger float. Others can correct me if I'm wrong, but I assume institutions invest a desired $ amount in a stock. So they just buy fewer shares. Also, as a holder I like a tighter supply when thinking of the supply/demand curve. Honestly, I don't think float has a significant affect on the long term price either way. Some funds won't buy stock priced under a certain dollar level, and some individuals don't like to buy high priced stock, which is the primary reason for splits. Really, its pretty much a non-issue to me UNLESS expanding the float is done by dilution, because that is a huge issue to me - but I think many people have guessed that by now!!!
Thanks for your thoughts,
Frank
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