InterDigital Inc (IDCC)

[The Count]

pgstocks - IDCC valuation

The problem for IDCC is that NO ONE knows what the real numbers are. Due to the ongoing lack of 2G rates from Nokia and Samsung and the lack of 3G licenses from the bulk of the market, IDCC's revenue earned in 2002, 2003 and the future is unknown and the likely range is still quite broad. There are no "good" numbers. Those who take the time to investigate and learn about IDCC can make there own best guess as to the expected revenue stream and invest accordingly. Until there are signed agreements that include royalty rates there will not be clarity into earnings. Only when that occurs will IDCC be a candidate for investors who use screens to select stocks.

So there are two choices. You can scream about the injustice on chatboards and bemoan the low stock price, or you can continue to buy as funds come in. When the numbers are no longer estimates but facts and future earnings can be forecast using a known royalty rate and projected sales of actual licencees, then IDCC will be fairly valued, widely owned by the big money folks and will perform in line with other stocks in the market and sector. Until that happens you can still buy this undiscovered stock cheap or sell this overhyped stock before reality comes crashing in. Do your own DD and take advantage of those who are too stupid to get past Yahoo's numbers. It's useless to complain about the lack of good numbers.

The poster formerly known as fmilt