InterDigital Inc (IDCC)

[The Count]

Not worried about losing my shirt

Sometimes it's best to leave before the show is over. Otherwise you stand the chance of leaving without the shirt on your back.

The stock has definitely lost its momentum and looks to be in a reversal. How low it's going to go is the question. There just does seem to be any imminent catalyst to turn this thing around any time soon imo.

I agree, there is no catalyst on the horizon. If we did not have the LG agreeement in our back pocket I would probably be out of IDCC right now because if they do not monetize their 3G patents then there is little value. If there were no major players signed then there would be big risk. But IDCC does have LG, and that says to me that IDCC patents do have value. While the pace of licensing is glacial, I feel very confident in IDCCs patents have value and they will get paid. It is taking longer than I'd expected and it may be less than I hope, but it is hard for me to imagine IDCC not making at least $2.00 a share, which would support prices at or above these levels. It's not hard for me to imagine IDCC having EPS of $5.00 a share or more.

This is not to say that the price won't fall from here - it very well might, especially if the market is weak. I'm just saying I still feel very confident that long term these shares are cheap and that I don't see a big downside risk longterm.