InterDigital Inc (IDCC)

[The Count]

You assume away the risks in your question

If you don't consider macro issues and you take Nokia off the table, there are very vew risks at these price levels. However macro issues are a real risk. Also while IDCC can take Nokia to the mat, if they do and lose, then that means that IDCC is going to either have to settle from a weakened position or have to go to trial, whick could take years from now to complete.

My opinion is that macro issues will not have a significant negative affect on IDCC, but it is quite possible. I also believe that IDCC has a better than 50/50 chance of prevailing in front of Judge Luckern. If IDCC does prevail then they would have incredible leverage to get a superior deal with Nokia and future contract renegotiations. I think IDCC's long term strategic plan is to get the best deal they can without ever risking another Motorola type decision. So while losing to Nokia at the ITC is a risk, I think it is unlikely.

IMO, the risk/reward is greatly skewed to the positive at these levels. But there is risk.