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Thanks Billy. That is an interesting opinion article…hopefully the impressions of the appeal proceedings are close to reality.
Bad day on the market...and IDCC was up to its third highest close in history: $ 111.94. 115.67 on Feb.15...and...116.70 on Feb 16.
Lately, it seems as though earnings day has a pop, then there is a cut back for a few days, then the climb out starts around the 4th to 5th business day.after earnings day. I think things may be a little different because of options expiration and Monday holiday, but hopefully the climb back to 117 will start tomorrow or Friday.
101% Institutional ownership, 1.35% insider ownership, 4.12M shares short,
I can't really remember the exact years I bought IDCC stock, but I learned about IDCC back prior to the MOT decision and lost a few thousand on calls after the decision. I bought bits and pieces of IDCC stock from the 90s into the early 2000s and still have them.
patopinion...in my "opinion", compression will always be needed. The need for more speed and larger (pipes) bandwidth is increasing every day. Compression is a way in which to use the pipes more efficiently when the demand continues to grow...just thinking about the use of video (like tiktok, YouTube, FaceTime, streaming services, etc) on mobile devices by millions of users, and how the need is to access the apps without video/audio stutter or any other imperfection.
I am not a chartist, but if you go on Stockcharts, IDCC has been overbought for awhile. Plus, Apple and QCOM are getting hit today also, which may indicate that the sector is seeing a sell-off cycle.
But...that doesn't mean I know what is happening.
I believe the "shorts", call sellers, etc were caught off guard yesterday, and needed to throw a lot of water on IDCC today.
Buy, Hold or Sell: AT&T (T) vs InterDigital (IDCC) Mangeet Kaur Bouns via StockNews | July 04, 2023
(a few paragraphs on IDCC several paragraphs below)
With the growing demand for high-speed data connectivity amid rapid digital transformation worldwide and increasing government investments, the telecom industry's growth prospects look promising. Amid this backdrop, let's find out if investors should buy, hold, or sell AT&T (T) and InterDigital (IDCC) now. Continue reading….??
Despite macroeconomic uncertainties, the telecom industry strives to remain resilient. The industry is well-positioned for significant long-term expansion, thanks to soaring demand for efficient connectivity amid the rapid digital transformation of businesses and consumers' lives. In addition, growing federal government funding for telecom infrastructure should fuel the industry's growth.
While investors should hold telecom stock AT&T Inc. (T) and wait for a better entry point in this stock, fundamentally sound InterDigital, Inc. (IDCC) could be an ideal buy now for solid returns.
Despite an uncertain macro environment, the telecom industry is poised to witness robust growth in the foreseeable years, driven by a rising number of mobile users worldwide, the continued importance of efficient data connectivity, and the growing demand for value-added managed services.
Moreover, with a surge in e-commerce, integrated Internet of Things (IoT) solutions in manufacturing and supply chain, or connected vehicle experiences in the automotive industry, the rapid digital transformation of businesses and consumers' lives provides numerous opportunities for the telecom industry to extend revenue streams beyond just connectivity.
Communication services providers (CSPs) capitalize on the opportunities and deliver value to consumer and enterprise customers with bundled services and connectivity options such as 5G fixed wireless access (FWA) and fiber.
According to a report by Grand View Research, the global telecom services market is projected to reach $2.87 trillion by 2030, growing at a 6.2% CAGR. The U.S. telecom services market is expected to expand at a CAGR of 6.5% during the forecast period from 2023 to 2030.
Growing government initiatives and investments to drive 5G deployment and adoption of fixed and wireless networks nationwide should also boost the telecom industry's growth and expansion. On April 12, Biden-Harris Administration announced the launch of the Public Wireless Supply Chain Innovation Fund, which aims to invest $1.5 billion in developing open and interoperable networks.
"The Innovation Fund is a critical step toward securing 5G wireless networks while driving innovation at home and abroad," said U.S. Secretary of Commerce Gina M. Raimondo.
He added, "Investing in the next generation of innovation will unlock opportunities for new and emerging companies to compete in the global telecom market, strengthen our telecom supply chains and provide our allies and friends with trusted choices and innovative technologies to compete in the 21st Century."
As per a report by Grand View Research, the global 5G services market is expected to reach $2.21 trillion by 2030, expanding at a CAGR of 59.4%.
Investors' interest in telecom stocks is evident from the SPDR S&P Telecom ETF's (XTL) 6.2% gains over the past month.
Given this backdrop, investing in quality telecom stock IDCC for potential gains could be wise. However, investors could add T to their watchlist and wait for a better entry in this stock.
Let's discuss the fundamentals of these stocks in detail.
(Did not copy & paste the AT&T write up...it was a Hold btw)
Stock to Buy:
InterDigital, Inc. (IDCC)
IDCC designs and develops technologies that enable and enhance wireless communications internationally. The company provides technology solutions, including 3G, 4G, 5G, and IEEE 802-related products. It also offers video coding and transmission technologies; and engages in the research and development of artificial intelligence.
On May 17, IDCC and the 6G Innovation Centre (6GIC) at the University of Surrey announced a bilateral research partnership to develop 6G enabling technologies that might impact future wireless standards.
"Our new partnership with 6GIC reflects InterDigital's commitment to collaborate with leading universities and programs to encourage innovative research outcomes and bolster the impact of our innovation through wireless standards like ETSI and 3GPP," said Milind Kulkarni, VP and Head of Wireless Labs at IDCC.
On May 15, IDCC signed a new patent license agreement with Alps Alpine Co., Ltd., and the deal covers Alps Alpine's range of devices under IDCC's standard essential patents related to HEVC.
In addition to demonstrating how IDCC's innovation is applied across a range of devices, its long history of research in the video space implies its asset portfolio strength in HEVC and other leading codecs. The collaboration should boost IDCC's revenue stream and expansion.
IDCC's trailing-12-month gross profit margin and EBIT margin of 86.18% and 43.36% are 76.9% and 943.2% higher than the industry averages of 48.72% and 4.16%, respectively. Likewise, the stock's trailing-12-month net income margin of 32.38% is significantly higher than the 1.71% industry average.
In terms of forward non-GAAP P/E, IDCC is trading at 12.25x, 47.7% lower than the industry average of 23.40x. Also, its forward EV/EBITDA multiple of 7.20 is 51% lower than the industry average of 14.69%.
IDCC's total revenue increased 99.7% year-over-year to $202.37 million in the first quarter that ended March 31, 2023. Its income from operations rose 295.1% from the year-ago value to $119.26 million. Also, the company's adjusted EBITDA grew 179.5% year-over-year to $154.81 million.
Furthermore, the company's non-GAAP net income and non-GAAP net income per share were $123.62 million and $4.21, up 301.3% and 325.3% year-over-year, respectively.
Analysts expect IDCC's revenue for the fiscal year (ending December 2023) to come in at $532.85 million, indicating an increase of 16.4% year-over-year. The consensus EPS estimate of $7.85 for the current year reflects a 107.9% year-over-year improvement. Moreover, the company has surpassed the consensus revenue estimates in each of the trailing four quarters.
IDCC's stock has gained 70.9% over the past six months and 55.5% over the past year to close the last trading session at $96.09. The stock has gained 14.5% over the month.
IDCC's POWR Ratings reflect a strong outlook. The stock has an overall grade of B, translating to Buy in our proprietary rating system.
IDCC has a B grade for Growth, Value, Sentiment, and Quality. Within the same industry, it is ranked #3 of 18 stocks.
To see additional POWR Ratings (Momentum and Stability) for IDCC, click here.
Funny,,,92.95 in AH. TC’s 5-o’clock chaz again.
I guess someone wanted “in” this morning.
Sooo…when does the discrepancy between reported shares owned by institutions and the total shares outstanding…get fixed. There are more shares owned than there are shares.
The simple math…29.67 million shares outstanding….then…
88.94% owned by insiders and institutions…then…
9.2% taken out by the auction = @ 552,000 shares left. Obviously, the simple math does not mean institutions didn’t sell their shares on the auction, which could lead to more shares available…. but there is very limited supply out there.
No mention of what the auction will do to share count, and therefore effect the P/E.
Huge volume day. Tomorrow will be interesting.
Volume was pretty high today, and no change in SP close from Fri.
Thought the same thing. He actually lowered the P/E ratio from his last hit job from just a few weeks ago, in order to justify his price target. Definitely a hit man for his short cohorts
Squingy..so you're a fan of cheating to get ahead, but you are not happy that Lenovo and others are not honorable and not paying IDCC?
yeah...when I first saw his post I thought he was making a macro reference, and then I was curious what he was talking about. But, in the end I think he was just talking about theft of IDCC IP.
Just curious....theft of what?
Qualcomm Says It Has a 'Wireless Edge' in the 5G Race
https://finance.yahoo.com/m/4c4833cd-bc71-3277-b0cb-699df9c9bcc8/qualcomm-says-it-has-a.html
It could be just churning the shares. This just looks like normal recovery from the pounce on earnings day. Make money on the way up and on the way down. They have been doing the same thing over and over again for years.
Not a lot of volume...still ammo left from that transfer last night
This pounce was planned and the ammo was gathered with that late day 400k to 500k transfer of shares yesterday. Standard playing by big traders just a different day in IDCC.
Throttling the share price for whatever reason. You would think that the volume would be higher today also. Those big volume transactions always seem to result in controlling the SP or pushing it down.
The manipulation is just to make sure the powerful (houses/people with money) continue to make tons of money. It is all rigged. The goal is not simply to suppress the share price, but to make money all the time. The powerful can short simply because of how much money they can throw at it.
I would say it doesn’t matter, because eventually IDCC should reach its deserved market valuation, but the energy that is expended in getting it there does zap its ability to truly move and reach higher share prices quicker. Head winds have costs to the average investor.
Then you would think that the share price would be running like “Forrest, Forrest Gump”, with that many shares being scooped up....and it it is not happening at the moment. It is about controlling the share price for shorts and options trading...imo.
Big blocks at end of or beginning of trading always seem to be to suppress the share price....I never think they are a good sign.
Yes. Zzfan is loophole
I believe that you misread the tone of my post. I was not attacking you. You seem extremely aggravated with IDCC. I was simply stating something you could do to alleviate your obvious frustration.
How about an alternative solution...sell your shares. You are obviously not happy with IDCC management, you can solve this problem yourself. Just sell. You want the company to change, but it is not changing to your satisfaction, so instead of wishing/hoping for something to change that is out of your control, you do have control over your own shares.
There are an almost uncountable other places/equities to put your money. Why keep torturing yourself?
Dude...have you sold license agreements? IDCC has technologies that are within the wireless communications standards, which means that companies have access to IDCC technology in order to develop their products. It is not like IDCC has their IP locked in a vault and companies have to pay IDCC prior to access. I am sure all companies that are using IDCC IP have been contacted and have been presented with licensing agreements. I am sure the companies have been warned of legal ramifications if they do not sign.
IDCC has to maintain price integrity with their IP, because if they discount for a new licensee, then the other previously signed licensees can revisit their agreements.
This IDCC licensing gig is not as easy as everyone thinks it is.
I guess we would prefer they not tell us about renewals. Renewals are actually important. It would be important for us to know if they didn't renew.
So....$ 19.80 in net cash per share and $ 8.78 in earnings per share...with a p/e of 9.81
What I am saying is at a $8.78 eps, even if it is a lagging eps, the share price will recover and go past the previous high within a few weeks. IMO
Eps for prior 4 Qs will be: $8.76 with a 17 multiple is: @$148.
Rumors are worth nothing. And I think your are making this up. Pumping for whatever reason. As in the past, Yahoo is for pumpers.
Something as simple as a $5.83 eps and 14.55 p/e can be provoking a move to at least a 17.5 eps which is $102 per share.
OT: I haven't graduated to all grain yet. 2nd fermenting my 4th batch now. I am surprised how good the beer is. And definitely the sanitizing takes an incredible amount of time. I am big IPA fan.
OT: Tomcat...do you do your own thing with your home brew or do you buy kits from an on line retailer? I use Northern Brewer.