InterDigital Inc (IDCC)

[rmarchma]

Nessco re investment trigger in IDCC you asked:

...."Since you say you are a potential IDCC investor, could you please tell us what triger or trigers would convince you to invest your money in IDCC?"

Jimlur asked me that same questions a good while back, and I told him a new Tier 1 license would probably get me back in. Well I did get back in during the ITC evidentiary hearing with Samsung, when it was initially reported by Revlis that Nokia had licensed with IDCC for 3G. However, I sold when it was found out during subsequent days of the Samsung trial that Nokia did not have a 3G license. I never reported this on the public message board, but I did send a private PM to Revlis to that affect.

I thought there was just too much risk re whether Samsung would license due to the "no violation" ruling by the staff. I really wanted to get back into IDCC in November of last year following the announcement of signing a term sheet with Samsung. However, I couldn't get back in at the point due to the collapse of the stock market, especially oil and energy stocks which compose a large chunk of my investment portfolio. I didn't have the necessary money to establish a significant position, and I didn't want to sell any of my oil stocks at such extremely low prices. I also thought trying to reenter IDCC through margin was just too risky given the economic environment at that time.

So currently I'm waiting and watching. I love what is about to happen to IDCC's second quarter earnings with a little more revenues, and a lot less expenses. What is holding me back now from investing in IDCC is the Nokia ITC matter, and another no violation ruling by the staff attorney.

I'm not as sure about a Nokia settlement before the ALJ rules as most are on this board. I still think a settlement is more likely than going to a decision, but I can't get out of my mind Nokia's scortched earth WAR against IDCC. It has been reported that Merritt will let this thing go to a decision, if Nokia does not offer a certain amount to settle. I think Nokia may feel the same way, if IDCC does accept a certain amount that they are willing to pay. There is an awful lot of enmity between these two companies that just adds to the risk.