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Hi Vegas,
I know you from previous posts. I have been following IDCC for almost 20 yrs. Sold a substantial position end of last year - because of loss of patience. With new CEO and this high volume day plus elevation to 70+, my take would be that we continue to move upwards. I have seen sixties in share price as a ceiling. With this high volume move above plus changed
Fundamentals (CEO) - I would be curious what your take is?
Fully agree
I also prefer dividends over share buyback, but the advantage of a share repurchase should be evident:
From Investopedia:
When companies pursue share buyback, they will essentially reduce the assets on their balance sheets and increase their return on assets. Likewise, by reducing the number of outstanding shares and maintaining the same level of profitability, EPS will increase. For shareholders who do not sell their shares, they now have a higher percent of ownership of the company’s shares and a higher price per share.
These charts on slide 17 look lame. Except for 2013 the co. spends less each year to enhance shareholder value - with 2017 so far being the lowest amount.
Dividends and buybacks in 2017 compared to the stock‘s performance, one must question co. as to why they include this chart in the presentation and make this deficit obvious to every potential investor.
The message is more like ‚each year we care less about our shareholders‘. They should have massively bought back this year to stabilize the share price performance.
Anyone care to have a chart showing the management bonuses from 2012 - 2017?
Whenever you show up here, it means the stock is ready to climb. Please stay for a while.
Sorry for you.
I had thought about selling some OLED - but held. Same with IDCC. I am an investor and believe there are plenty of reasons to hold on to my IDCC shares. Actually I have been adding to my position these past days during the setback after ER. Been holding Apple with a plus of 3,400 percent. I am not selling for as long as the fundamentals and general outlook are sound. This is the case with AAPL, IDCC, OLED and also LITE.
Untrue...
You showed up on 23 February at around 11:28am, when the stock was at USD 84.80.
Man, they managed to scare me... will not sell. This was an earnings report with no scandal news... brrrr
Any reason for this price appreciation?
Follow up re patent transfer from Huawei and 2q 17 recognition...
From current 10-K released today:
We recognized $138.1 million of revenue under this patent license agreement during third quarter 2016, including $121.5 million of past sales. We will recognize future revenue under the agreement on a straight-line basis over its term. A portion of the consideration for the agreement was in the form of patents from Huawei. We have received half of the patents as of September 30, 2016, and we will receive the remaining patents by June 30, 2017. Of the $138.1 million of revenue recognized under the agreement to date, 94% related to cash receipts, and 6% related to the patents transferred to date. We have deferred recognition of revenue related to the patents yet to be transferred, as their value will not be determinable until the completion of the transfer process. At the completion of the transfer process, we expect to recognize additional past sales and current patent royalties associated with these patents.
In relation to what FISH21049 has marked in red, please see the IDCC press release of 6 September on the Huawei settlement:
"...The agreement covers Huawei’s and its affiliates’ sales of their 3G and 4G terminal unit products and sets forth cash payments to InterDigital and a process for transfer of patents from Huawei to InterDigital.
So, the 8K basically states that there is a transfer of patents, which from Huawei to IDCC, as a result of which IDCC will receive additional revenues to be recognized in second quarter 2017.
You receive a patent and then get royalties from the assignor? That's a pretty good structure for IDCC. Congrats.
Agree. Climbing so steadily without any sign of greed. Looks to me as if someone is constantly accumulating.
Heard rumors that a bank is issuing an 'Avanci' IoT basket ETF (reflecting the IoT licensors included in the Avanci pool). Not sure whether this is actually a reason, but it would add fuel to the rally. In my research for older reports on IoT companies (and corresponding buy recommendations), IDCC has never been mentioned. I guess that will also change with IDCC being in the club of Avanci.
Holding strong, because i still don't see greed in the trading. Looks like heavy accumulation ongoing... Just guessing by which party/parties...
Is everybody just watching or is anyone on the board buying at these levels?
Similar spikes in IDCC and OLED
In the more recent past I have repeatedly noted the same intraday spikes in the share prices of OLED and IDCC. See, for example, today at around 1.20 pm. Of course, with IDCC recently clearly outperforming OLED.
Power11,
When did you sell?
I am not selling at this level.
We have been consolidating for one year after our run to 60.47.
Now we broke through that resistence and have seen these levels earlier only in these hockey-stick hypes. Provided that the market in general does not turn sour, my guess is a climb to the 70 - 80 level - with the earlier ATH being the primary point of resistence.
I did - once again.
Hope that sp will be higher than 58 at the close
sonic22
Please see the 10-q:
Huawei Arbitration
On December 23, 2013, InterDigital and Huawei agreed to engage in an expedited binding arbitration to resolve their licensing disputes. Pursuant to their agreement, on April 9, 2014, InterDigital and Huawei initiated an arbitration with the International Court of Arbitration of the International Chamber of Commerce (ICC) jointly seeking a determination by an arbitral tribunal of FRAND royalty terms and conditions to be included in a binding worldwide patent license agreement to take effect upon issuance of the arbitration award. An arbitration hearing was held on January 12-16, 2015. On May 26, 2015, the panel convened by the ICC delivered a confidential partial award. The panel convened by the ICC delivered a confidential final award dated July 14, 2015.
On July 9, 2015, InterDigital filed a petition in the District Court for the Southern District of New York for an order confirming the arbitration award. On the same day, Huawei filed an action in the Paris Court of Appeal requesting annulment of the arbitration award, and to date Huawei has not made any payments under the award. Both proceedings are in preliminary stages.
The company will recognize any related revenue in the period in which the amount of revenue is fixed or determinable and collectibility is reasonably assured.
I am not into French procedural law. I would think, however that a lot will depend on whether IDCC will be able to obtain an order for execution from the US court (which also is pending). If yes, Huawei will have a tough time as the Paris court would have to order a suspension of the enforceability. This would usually be issued in extra-ordinary circumstances (veeery exceptional), i.e. if the Paris court finds that a dismissal of the award is likely and if execution of the award would lead to irrecoverable results. This is very rare regarding payments (as they can always be recovered). So, I believe the CEO was right to be upbeat on the situation. IDCC might want to use this back-and-forth situation to also start discussions with regard to also settling the Chinese rates. But we don't know, of course.
sab63090
I guess they agreed to Paris being the place of arbitration. It is not surprising to see Paris/Europe being the place of arbitration, if one party is from the US and the other from Asia. Sounds like a compromise. I would also not think that a Chinese party will get a better treatment before a Paris court as compared to a US entity. And I can confirm that rules regarding overturning an arbitration award in Europe are no different to the US.
IDCC obviously did a good job in the settlement agreement to also separate the payment terms of the Non-Chinese rates from the Chinese rates. According to the wording in the 10q IDCC was expecting payment after delivery of the final arbitration award (and that would mean that the Non-Chinese rates would not be contingent upon resolution of the pending Chinese litigation concerning the Chinese rates). Logical but nevertheless comforting. Like.
sjaym
Arbitration has been fully resolved. See the 10q, which clearly states that not only the partial, but also the final award has been delivered by the tribunal on 14 July. Arbitration was with respect to the Non-Chinese FRAND rates.
It is just the Chinese rates, which are now under review before the Supreme court in China. The lower instance court has held that the appropriate FRAND rate is 0.019% of the actual sales price of each Huawei product.
That's how I read it.
Gamco, I am afraid that including 5G is wishful thinking. It has not even started. How would one know whether Huawai devices actually infringe or use IDCCs patents? My take is that the royalty awarded comes in quite high - and Huawai will argue that the tribunal has severely violated antitrust laws by imposing such high rates. So we will probably see all those arguments that Pegatron and others currently use in their antitrust suits. Similar as with Arima, IDCC will quickly settle. I believe to having understood BMs comments in that way.
Puzzled
Huawai arbitration resolved - obviously in favor of IDCC (as Huawai tries to set it aside). Only breaches of ordre public or other grave breaches of law would be admissible, but no argument that the tribunal erred in law will be heard. Looks good to me - and the sp should head into the different direction.
Huawai reference in 10-Q
On May 26, 2015, the panel convened by the ICC delivered a confidential partial award. The panel convened by the ICC delivered a confidential final award dated July 14, 2015.
On July 9, 2015, InterDigital filed a petition in the District Court for the Southern District of New York for an order confirming the arbitration award. On the same day, Huawei filed an action in the Paris Court of Appeal requesting annulment of the arbitration award, and to date Huawei has not made any payments under the award. Both proceedings are in preliminary stages.
The company will recognize any related revenue in the period in which the amount of revenue is fixed or determinable and collectibility is reasonably assured.
Hi bulldzr. I have been holding and watching the stock for more than 10 years. The upward movement that started last year is serious. They are trying not to let this run away and avoid a hockey stick. If you look on the chart from a longer perspective 2yrs/3yrs, it is wonderful. I am so heavily invested in this stock, I would go crazy with more volatility. So I like what I see.
It is one month after the bond issue. Will we get GS coverage?
Are we expecting news from the court today, anyone?
Yes, definately.
I would not have thought this is going to be on sale below USD50...
tsss... Puzzled.
Impact of Apple Watch
Has anyone ever brought up the question of upcoming revenues from Quanta Computer (licensed) - as they are the sole supplier of the Apple Watch. I understand that Apple has ordered more than 5 million units at product launch. I guess that such revenues would fall in IDCCs 2nd quarter, but wouldn't that have to be considered as if there were a new licensee?