InterDigital Inc (IDCC)

[The Count]

$3.00 2006 earnings won't rocket share price

Dave,
The stock price is valued based on recurring revenues. Getting the Nokia/Samsung money will help the price by the amount of the increase in cash per share, possibly a bit more, however the $3.00 won't be used as the earnings for PE multiples. This is especially true with the 2G revenues dropping off at the end of 2006. This is why it is imperative, in my opinion, for IDCC to get in court and start suing multiple infringers in different jurisdictions to get resolution on IDCCs IP value and start getting paid. Collecting years after the fact is valued far less than recurring earnings. If they can't get a settlement that will allow them to license the bulk of the market they should go to trial.

Delay results in compromise on past amounts due, lumpy, non-recurring revenues and failure to reach full valuation. If we lose, then I am wrong about IDCC and my investment will suffer. But at least we get a decision. And if we win and can actually license for 3g and get paid a reasonable royalty from most of the 3G sales then we can start talking about the Rookie 100. It's time to move. If we're still in this position a year from now without 3G to replace 2G it won't be pretty.

IDCC Investor = Sisyphus is quite an apt analogy. Very good Hardball.