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Re: We're going back to .... 

By: zzfan in IDCC | Recommend this post (2)
Sat, 23 Jun 12 3:11 AM | 424 view(s)
Boardmark this board | InterDigital Communications 		Msg. 45595 of 48237
(This msg. is a reply to 45594 by Rakitno)
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I would love to see the BOD deodorize the increasing short numbers on this stock. Let them try to get out while others are trying to get in. The company has been buying back shares, but the same old number of outstanding shares seems to stay the same in the quarterly reports. Maybe this time will be different if, as and when they actually execute the authorized buybacks.

MO
zz

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The above is a reply to the following message:
Re: We're going back to ....
By: Rakitno in IDCC
Sat, 23 Jun 12 2:10 AM 		Msg. 45594 of 48237

Yes. There is a cost.

If a trader sells shares short and those shares pay a dividend, the trader is responsible for paying the dividend amount to the broker. The money the short seller pays is not the actual dividend but is a payment in lieu of dividend.

http://wiki.fool.com/Substitute_Payment_in_Lieu_of_Dividends

So an increase in dividend would hurt shorts. I have no problem with the share buyback and encourage it but if we're going to drift lower on low volume like today then the shorts are back at it and they need their costs to increase. A lower float only makes things easier for them with volatile movements until positive news is reached. We already have a dividend but like any tax, by increasing the dividend, we can reduce the shorts activity and encourage long term ownership.

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