InterDigital Inc (IDCC)

[blueskywaves]

$34 million (plus ongoing royalties) is not a small number (read: few) for a small cap company.

There you go, Paul.

In terms of shareholder value creation, a one-time settlement of $34M for company which has only 56M shares outstanding is just as good as a one-time settlement of $488M for a company with 800M shares outstanding.

If IDCC ends the year with a recurring royalty income of $3-$4 per year ($168M-$224M) then that's just as good as QCOM ending the year with $2.4B to $3.2B in recurring royalty income per year.

If IDCC ends the year with $9 per share in cash/investments or around $400M-$500M that's just as good QCOM ending the year with $7.2B in cash/investments.

At the end of the day, common sense tells us that a company with a market cap of $1.1B has a better chance of doubling or tripling than a company with a market cap of $25B-$30B.

At the end of the day, common sense tells us that a company with less than 30% institutional ownership has the ONLY chance of doubling its institutional ownership base compared to a company which already has 60% institutional ownership.

LOL.