Replies to post #24735 on InterDigital Inc (IDCC)

[lastchoice]

Once, I will be voting no. Not out of knee-jerk, but because I feel options at $26.35 would profit from the last series of accomplishments--which we are waiting to profit from. When the price appreciates to where it will be just prior to NOK/Sam, (perhaps high 30s), they can have huge options to succeed at 3G and chip business.

[sophist]

On the other hand, if I follow your logic and if the stock Option Plan is defeated, Management may either (1)strive to drive current share price lower so they can purchase all the millions of previously authorized but not yet granted Options at a lower FMV, or (2)perhaps tread water for another year until the next opportunity to offer a stock Option Plan presents itself so as to be able to grant such Options at the lowest FMV they can manage to manipulate. I find the logic behind your speculations on the motivations of Management so preposterous that if I really believed this was the principle motivation for their actions, I would have little confidence in any of their business decisions and I would question the sanity of remaining invested in such a suspiciously criminally motivated if not mismanaged company.

I would think that the first priority of management is to do whatever it takes to keep their jobs (the single most important source of their income and financial security) and do the best job they can to maximize the success of their business and resulting shareholder value so as to reap the secondary rewards of (a)enhanced reputation and earning power and (b)whatever Options "come into the money" they have. I just don't buy your theory of management character and motivation upon which your argument largely rests.

[Danny Detail]

Corp Buyer .. I have scanned all of your previous posts when they were made as well as all of the posts of everyone else on this matter that I don't have on ignore. I understood them all and have thought carefully about them. However, in spite of all of the precise and accurate calculations regarding dilution by those in the "no on #2" camp, there have only been assertions offered by your side that at worst there will be no appreciably diminished desire or ability on the part of management to enhance shareholder value and you in particular have even gone so far as to assert that they will actually be more motivated and more able to drive the share price without the options.

Perhaps you are all right, but in my judgment you are wrong, way wrong. I have watched this management team develop since I bought in November, 1999. They have had more than a few stumbles along the way and there were certainly times when I would have said they were going to fail miserably. But it is hard for me to believe that anyone who listened to that CC today could conclude that the management team is now anything other than a winning one that is getting better and more confident in their abilities with each passing day. They truly do have momentum on their side .. momentum of their own creation in many respects. Their morale is high and infectious. Finally, they clearly have a well thought out plan of how to maximize shareholder value. I feel strongly now that a defeat of #2 could slow that momentum and diminish morale appreciably, as well as make the plan more difficult to accomplish, all of which in turn could easily cost the shareholders more than they will gain through avoided dilution.

Therefore, I will be voting yes on #2 and urge other shareholders to do likewise.

Regards,
Danny