InterDigital Inc (IDCC)

[NukeJohn]

Is this the start of a big run?

I have followed Intellectual Property stocks for about 15 years. Although I was aware of IDCC years ago, I have only been following it closely for about 3 years. The current situation with IDCC reminds me of Rambus in early 2006 when Rambus had several pieces of news that caused the stock to rise from 16 to 36 in eleven trading days. Rambus signed a small license with AMD in early January 2006 (about 5 Million per quarter), then two days later won a verdict on spoliation against Hynix in Judge Whyte's court (still under appeal). They were also in settlement negotiations in Judge Seaborg's court with Samsung, Hynix and Micron (none of which resulted in a settlement at that time). In those eleven trading days, RMBS' stock skyrocketed. This was a combination a couple of pieces of good news and a short squeeze.


http://finance.yahoo.com/q/hp?s=RMBS&a=11&b=30&c=2005&d=00&e=17&f=2006&g=d



Prices
Date Open High Low Close Volume Adj Close*
Jan 17, 2006 35.44 36.15 33.85 34.27 18,572,900 34.27
Jan 13, 2006 32.90 34.42 31.51 34.25 20,195,700 34.25
Jan 12, 2006 33.14 33.90 32.16 33.72 21,958,800 33.72
Jan 11, 2006 30.04 34.82 30.01 32.20 41,433,500 32.20
Jan 10, 2006 27.75 28.75 27.38 28.31 11,074,000 28.31
Jan 9, 2006 23.12 28.81 22.87 28.20 24,843,800 28.20
Jan 6, 2006 22.24 23.00 21.79 22.94 4,999,900 22.94
Jan 5, 2006 22.67 22.75 21.12 22.23 18,826,000 22.23
Jan 4, 2006 18.32 18.50 18.02 18.49 2,884,200 18.49
Jan 3, 2006 18.03 18.20 17.50 18.20 6,623,800 18.20
Dec 30, 2005 16.44 16.48 16.00 16.19 997,900 16.19




With IDCC, we know the dividend is coming and we know from Tuesday's analyst conference that IDCC is currently in settlement discussions with Nokia and several others (Motorola, Sony/Ericsson, ZTE, and Huawei, among others). We know that LTE is ramping and IDCC has the key IP that covers the standard (along with QCOM and few others). We know that the 3G market is growing 20% per year and IDCC only has 50% of that market currently licensed.

It just feels eerily similar to that time 5 years ago when Rambus blasted off......let's hope I'm right.

JMHO,

NJ