InterDigital Inc (IDCC)

[techinvester]

JimLur, The next nine months will show whether we really are geniuses or idiots. I am still not sure that question has been answered. I am in the money and happy to be in the money but my return for the money tied up for years does not live up to my expectations. For that matter, based on previous posts by other longs, their expectations have also not been met. Most have posted they are happy with the settlement based on their assumption that 3G licenses and royalties are "just around the corner". What is the basis for this assumption? What convinces others to license promptly when on the surface it would appear delaying the act of licensing has no apparent down side. Until the 3GPP defines the companies truly holding essential patents, I am concerned we may be in for a lengthy wait for additional 3G licenses and royalties. I am hopeful that there is a basis for this assumption but it is not clear to me. I think the remainder of the year will provide definitive evidence whether we are truly geniuses or idiots.

Before I get labeled as a basher or short, I am long and have placed my faith in IDCC for more than 5 years with a substantial portion of my portfolio. I have also increased my position during the past two days. I am just concerned relative to the settlement. Good news has always been just around the corner. Why are we still struggling to break through the $20 resistance. If the numbers stated by IDCC are accurate and the settlement will provide sustained 2G royalties amounting to earnings of approximately $3/share shouldn’t IDCC command a share price of $45 to $60 based on a PE of 15-20? The lack of analyst recommendations and price targets could be the following; delay to enable their clients to purchase prior to recommendation, delay to verify numbers stated by IDCC, concern whether Nokia or Samsung will request arbitration, delay to determine other potential 2G licensees. I agree with Loop, clarification of the rationale for settlement should be provided. Hopefully this will become self evident over the balance of the year but I hope we are not still speculating the rationale next year at this time.

techinvester
PS: Sorry for the rambling but we should be moving from speculating (reading tea leaves) to IDCC providing forthright information.