Replies to post #410775 on InterDigital Inc (IDCC)

[felix7]

Have u considered the settling of events or recognition of revenue that may be pending soon and updated guidance this qtr? I don't think taking profits is a terrible idea but I am not confident in a short with that out there. Maybe if that drags on a few months u have a window?

[ddutta]

Stock has climbed steadily and under strong accumulation since earnings.

1. No insider sales
2. Amazingly strong bid
3. Potential to earn $6-$7 in 2017 if revenue is $550 million (with Huawei, LG & other unlicensed cos).
4. Attractive buyout target (iOT & 5G patents, every additional $ in revenue drops almost entirely to earnings before taxes)
5. With very high barriers to entry in wireless marketplace, a large new entrant can offer 10 -12 times sales ($4 - $5 billion, or $110 - $135 per share)
6. If 1-1.4 million warrants were exercised at $63.18, another $63 - $100 million cash ($2 - $3 per share) is in IDCC coffers.

This may pull back to mid $60's (5 - 7% from here), but can also increase 50% very quickly with the right news.

Cover your short and sleep well.

JMHO