What did Amit Kapur do wrong?
So many folks having fun mocking Amit Kapur by messing with his name. I'm sure he's mature enough not to let adolescent barbs on an internet message board bother him, but they bother me. It reflects poorly on this board because Mr. Kapur did nothing wrong. On the contrary, he did his job very well. He saw the price run up 40% on no news and downgraded to market underperform based on valuation. The market proved him right. He is an analyst whose job is to assess stocks. He is supposed to push stocks on the most optimistic assumptions. That was tried, remember the internet bubble? He did nothing dishonest or unethical. He gave his honest opinion.
If anyone can dispute any of his analysis, go ahead. But it is silly to criticize him just because he doesn't tell you what you want to hear. If you go to the doctor and he tells you not to eat foods you like does he become a quack? Personally I believe that he is too conservative regarding IDCC. His income projection seems low and his price target does not include any upside potential from new licenses. While I disagree with him it doesn't mean I have to disrespect him. Nor should the company give him the cold shoulder because he's not jumping up and down pumping the stock. It will be a nice boost when IDCC signs the next big contract and he jumps on the bandwagon. When skeptical investors who watch this stock see the skeptical analyst become a believer, then they become buyers. There is such a misguide expectation of loyalty in regards to IDCC stock. It is such a puzzling concept to me.
Does anyone really believe price declines can be stopped by "strong hands"? What we need for a run up without a fall back is real news that changes the fundamentals going forward. Remember LG? We were trading in the 15-19 range. Gapped up to 22.44. We haven't fallen back to the old range because the fundamentals changed. Since then the range has been 24-28. Only new income streams will permanently lift us above that. Not the strength of the hands nor the loyalty of the shareholders.
Frank
