Replies to post #166727 on InterDigital Inc (IDCC)

[olddog967]

Desert D: As you say going to an underperform (sell) seems ludicrous. I think the problem is that while he thinks there will be delays in new licenses, his price target was based on a multiple of this year's earnings. While the delay would probably affect investors attitude about the stock, it will not affect this year's earnings.

From his last report

"Our price target is a range of $34-$39, and is derived by applying a 20x-23x multiple to our 2006 EPS estimate of $1.69 (excludes back payments, but counts Nokia and Samsung on a quarterly basis). We believe our multiple is reasonable given the 2006 23x multiple for the NASDAQ Composite and competitor QCOM’s 21x multiple."


I surely don't understand Carpenter.

[Corp_Buyer]

Remember, management rakes in another boatload of RSUs for their personal accounts in Jan. 07 based on a $ award amount, so why should we expect them to achieve any more significant new 3G licenses before then? What a coincidence that the 3 for 1 RSU deal is tied to 3G results in Jan. 08?

I think the downgrades in the face of a larger than expected monetary Sam award can mean only one thing - our analysts have lost confidence in management to execute new 3G licenses, to collect from Sam (without force of law), continued infringement of our 3G portfolio, and new legal battles extending into 3G.

If you follow my posts the past couple of months, this scenario we are now seeing played out was implied by the the massive insider sales we saw recently.

Having said the above, I do still believe that IDCC will indeed collect on its award from Sam, and that we do have an essential 3G portfolio that is being notoriously infringed. The question is who will IDCC take action against and when? When will our management finally drive results and the share price for shareholders, versus driving the number of shares they own personally?

MO,
Corp_Buyer