InterDigital Inc (IDCC)

[The Count]

Ronnie, thanks for your estimate

I really appreciate your input on this board. I miss your 10 compelling reasons to buy IDCC. Why don't you pull them out and see how many are still true. I think (and hope) that this is the last best buying opportunity for IDCC. It's not a slam dunk, but the risk reward is massively tilted to the positive at these levels IMO.

You have a great understanding of the financial situation and how new licenses will affect earnings. Play around with some conservative assumptions. For example, assume IDCC licenses 75% of the market at $0.60 a unit. Per IDCC's presentation, that would result in $420 MM revenue in 2012. Assume expenses are $240 MM, that leaves $180 MM profit, less 33% taxes leaves $120 MM. Estimate 50 MM shares and you have $2.40 per share income. Using a multiple of 20, that's 48 per share. These are 2012 numbers, so this represents a 5 year time frame, but that would still be a ~25% return compounded annually. This is not worst case, but IMO it is at the lower side of the bell curve.

Plug in your own numbers based on your expectations of the range and the related probabilities. I think you will find that the risk reward ratio at these levels is a compelling reason to own IDCC right now. Best of luck to you no matter what you choose to do and my thanks for your very valuable contributions to the discussions over these many years.

Frank