Replies to post #23380 on InterDigital Inc (IDCC)

[Danny Detail]

blueskywaves .. RE:"Notice the pattern?"

Yup .. I call it setting IDCC up to fail rather than succeed.

[0nceinalifetime]

Blue, about the only pattern I have noticed is your continued propensity to stand up for management and other insiders. You say more options will make management work harder? LOL!

If a farmer feeds more slop to his pigs do they work harder? No, they get fatter! You think more options will make them work harder but fail to consider that it may be easier for management to lower the stock price to get a favorable strike price than it will be to continue to propel the price upward. There are two ends to the valuation of options, the initial strike price and the share price when those options are finally exercised. It is just as profitable to lower the strike price that the options are granted at as it is to raise the share price.

The bottom line is more options may not align insiders interests with those of other shareholders as much as everyone keeps saying.

Once

[mschere]

Here is one of the first times I could find fault with any your on target posts..IMO: There is no distinction to be made between EPS valuation and sales based multiples..IDCC is unique in the sense that..It can raise its gross income stream ten fold and add not one dollar to cost of merchandise, labor, general overhead etc..90 cents on each increased dollar revenue should fall to the BOTTOM LINE..



Apparently there are people who actually want IDCC to have an EPS-based multiple instead of a sales-based multiple during the early stage of its growth. These are the folks who don't seem to understand that sales-based multiples result in higher market caps for growth companies that still need to finance their growth plans.

[Learning2vest]

blueskywaves, one fairly clear "pattern" that I have been watching since we got the news about recent insider selling and the proposal for additional ISO options is the trading in IDCC shares. We can debate the pros and the cons of those two issues until the cows come home here in this forum and still not change anybody's mind. But while we have been discussing things here the market has spoken, and it sure looks like the market does not have a problem with those issues.

[The Count]

BSW, I'll be brief

Apparently there are people who actually want IDCC to have an EPS-based multiple instead of a sales-based multiple during the early stage of its growth. These are the folks who don't seem to understand that sales-based multiples result in higher market caps for growth companies that still need to finance their growth plans.

You are the king of non-sequiturs. It isn't about what we want, it is about what the market will actually do. What any investor believes only affects their valuation of the stock and their decision to buy and sell, not the market as a whole.

I believe the market is going to value IDCC based on EARNINGS. I also believe that IDCC will not trade over $100 this year. It does not mean that's what I want. Big difference.

The Count