Replies to post #34552 on InterDigital Inc (IDCC)

[Danny Detail]

Loop .. Sorry, errand time to the max. Your post deserves a thoughtful response. Will give it a shot this afternoon or tomorrow morning.

[sailfreeee]

Loop:

"I cannot think of one reason why the 2 new analysts would initiate coverage at this time on IDCC if the slightest chance for arbitration with Nok still exists."

I completely agree with you. Why would they take the chance of IDCC dropping if arbitrations was a concern (concern 2 ways--1.it will not happen, 2.Even if it does happen it will not effect the price much because of other factors---good 2nd quarter results--3g contract with ERICY, Mot etc.)

The next question is how did they reach this decision following the FD regulations. I don't believe that IDCC gave them the wink and nod, but more likely adding the facts up, don't the 2 big guys also follow Nok? A question put to IDCC might be of great importance to IDCC which would make it a FD violation, but a similiar question put to NOK or ERICY might be considered totally unimportant and might get the needed response.

[bulldzr]

Loop, just got a few minutes break between games...

"I fell into the frenzy and added yesterday early...Sadly, my reason for adding is related to the view of Bulldzer."

Sadly? LOL! You should know better than to base a buying decision on my views.

Don't feel bad...the shares you added will be in the money at some point. "Time" has evolved into a new and yet undefined dimension for us long IDCC'rs...kind of a Rod Serling thing. My wife and I added another 1450 shs in the $26.50 range to our ira's the day of the Sharp announcement, only find out later that we probably bought some of Harry's shares from the planned sell. What a genious I am, huh?

OT: Sorry all but it is Saturday, and that means baseball/softball around here. Loop, rookie, tucker, and rockitt...I am about to bust so I gotta tell somebody.

Ms. R's team is playing in a tourney in Magnolia and we had an 8:00 game this morning against an 18 year old team from Beaumont. These were some big girls, 4 or 5 of them had 6 inches and 40 pounds on Rachel, I aint kiddin'...I think their 4 hitter was my size. Anyway, our pitcher had control problems in the first and the outfield wasn't awake yet and they jumped up 2-0. We tied it in the second when they walked Ms R (batting 4th), she stole second on a delayed steal, another walk, a hit, and a throwing error and we were tied. Anyway, in the top of the 4th, still tied 2-2, our pitcher walked the leadoff hitter. After one out, the runner tried to steal second and Ms R had her gunned, but the shortstop was asleep and late to the bag...couldn't make the play on the run. The pitcher then walked the hitter to put runners on 1st and 2nd. On the second pitch to the next hitter, Ms R had the sign on and gunned the ball to 2nd...picked her off, out, not even close. Then strikeout...end of threat, end of inning. These games are on a time limit, and I new it was getting close. In the bottom of the 4th we had 3-4-5 coming up. They had a crafty lefthander that threw a mean fastball/screwgie that broke down and away from the right handed hitter. Our 3 hitter struck out for the second time (I don't think any of the pitches were strikes, either at bat).

So Ms R comes up...from my spot in the smoking/pacing section down the line past the dugout I asked the first base umpire how much time was left? "Two Minutes". Long story short...on a 1-2 count that crafty left hander left a pitch over the plate...and Boom!!!
Home Run to Right Center, Walk Off, game over. Next game at 3:15...gotta go. (I love this game!!!)

[Danny Detail]

Loop .. Sophist gave an excellent response to your post and I don't have a lot to add but there a couple of comments I would make.

As much as I have followed IDCC, if I made a living as an analyst, I would not iniate coverage unless I had a strong and credible report from a reliable source that Nok was done.

You probably wouldn't last long as an analyst if that is the case or, at a minimum, you wouldn't be a very well paid one. Analysts that are unwilling to take risks don't last much longer than dogs who spend their days chasing cars or golf pros who keep having to make four footers for pars. These analyst calls have to be put in the context of the primary audience, institutional money managers.

I'm about to make some generalizations about professional money managers that I recognize have numerous exceptions but I don't think they would refute my basic point. These folks are very disciplined in their approach to investing money and are all about diversification .. they don't bet the farm on anything no matter how great the potential pay-off might appear to be. They don't use leverage and they don't play "beat the clock" with options. They think in terms of building a balanced portfolio rather than picking the very best stocks. Their goals are long term and expressed as average annual returns in the 10%-20% range. They use a top down approach (i.e. start with an economic forecast) to build their portfolios rather than bottom up (i.e. start with picking stocks). They expect to have some losers and understand that some of them might even be big losers. They understand that analysts are going to make mistakes and focus on their batting averages rather than any one time at bat. They are especially willing to cut an analyst some slack when he or she is wrong for the "right" reasons (something happened to make the forecast wrong that no reasonable person could have expected .. like litigation to resolve NOK/SAM). They are much more concerned about the likely final resolution and willing to hang in there for it to come than worried about any missteps that may happen along the way. The sell-side analysts understand all of this about their institutional clients and go about their jobs with that as a foundation. They all speak the same language and look at money management the same way.

Based on your past dealings with IDCC, do you feel that the present IR and accounting personnel are savy enough to walk through the institutional mine fields as the company moves forward?

I'd have to spend a lot more time with them to make a personal judgment on that. However, it sure seems to me that they have come a very long way in that regard. Just compare the most recent CC with the ones back when I sent my report to them in January 2001 as well as no sell-side analyst coverage then as contrasted with four today and the very high likelihood IMO of at least a few more in the near future. The e-mail alert system and the website are orders of magnitude better. Etc., etc. Again, my report had little or nothing to do with accomplishing any of that. Written study materials aren't of much help on this stuff. You pretty much have to do it and sink or swim. So IDCC management is still in OJT in this area, and I wouldn't give them less than a "B" in that regard. Also, the analysts are putting them through a cram course at the moment and my gut tells me they are not going to fail and could very well surprise us to the upside.

Have a great day.