InterDigital Inc (IDCC)

[blueskywaves]

The price should be based on reasonable and predictable bottom line 2004 forecasts

I disagree. Most companies typically have to adjust management teams and operating models several times on their way to the $100M, $500M and $1B annual revenue milestones. In these high-growth stages, PS (price to sales) is preferred over PE (price to earnings) because a small company has to keep on reinvesting its cash flow in its growth strategy otherwise it won't get growth multiples.

Have you ever heard of a small company sacrifing growth for margins because it wants to earn value multiples instead of growth multiples?