InterDigital Inc (IDCC)

[Learning2vest]

malko, guessing that when you say "the street" you are mostly talking about the funds and institutions(i.e., those big boys manage something like 80% plus of the cash invested in equities so when they move as a group, they pretty much ARE "the street"). After reading your ref post, it occurred to me that when those big boys get involved in a stock(i.e., like IDCC), they take control and individual investors are pretty much along for the ride.

Looks like the funds and institutions are moving as a group on valuation right now. Fundamentals(and reasonable P/E valuations based on those fundamentals), is back in style. Owning a stock valued higher than the current fundamentals will support is bad form for the professional money managers. They are "boiling the ocean" to find investment opportunities priced below fundamental valuations, and selling anything priced higher than the fundamentals will support. Net result is that stocks are being priced based on fundamentals.

That's just about the only explanation that I can come up with for seeing IDCC trade like it is right now. Apparently the big boys are ignoring what the future might hold for InterDigital and trading it based on the fundamentals in evidence. If that is true(?), the rest of us are along for that ride until either the big boys change the rules in their game, or news from InterDigital changes the fundamentals.

After expecting explosive value appreciation when "the street" discovers the earnings "potential" at IDCC, it's really amazing to see it being priced on fundamentals. Guess the good news for long term investors is that it's still not too late to get IDCC's future expections for free.