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pochemunyet

03/01/17 11:47 AM

#415737 RE: SameJC #415734

Highly unlikely. Buy now to make money.

la-tsla-fan

03/01/17 1:08 PM

#415738 RE: SameJC #415734

Growth has slowed down because most of the royalty income is now derived from fixed fee licenses. However, there are avenues for growth:

1. We do not know if 5G is included in the fixed fee licenses.
2. There are additional licenses possible in the 3G/4G market.
3. IoT.

For now, the SP appears to be about what would be expected based entirely on projected recurring royalties of $360-$380 million per year.

My calculation of SP based on recurring royalty projections as of today:

Projected royalty income (midpoint of projected range): $370 million
Expenses (assumed same as 2016): $229 million
Gross income: $141 million
Net income (assumed about 30% for taxes): $100 million
EPS (based on 35.2 million shares): $2.85

Using an EPS multiplier of 26.9 (same as the S&P500 trailing P/E), stock price would be $76. Adding in cash (be careful here, don't use total cash because part of that is deferred revenue), we get to today's price.

jmo
LA