InterDigital Inc (IDCC)

[JeffreyHF]

How about the notion that if IDCC scraps or off-loads the SlimChip product, the vast majority of future revenues will be derived from royalties. Everyone knows that Nokia will come to terms, but given the way recent licenses with major players have been structured, any Nokia deal is likely to be relatively short in duration, and fixed fee in nature. Inability to sign long term, unit-based royalty agreements, at a robust percentage, takes away S-curve market growth upside, and puts a predetermined, capped, temporally static, number on future earnings. Upside to guidance becomes dependent on signing new licensees, the pool and quality of which will ultimately decline.
I think "the street" is legitimately concerned about how well IDCC will grow, relative to the markets for wireless infrastructure and devices.(And, I expect this stock to predictably pop on the Nokia deal, serving as an exit trigger for many who have hung in.)