So ... olddog ... if we go further With $2.78 how the analysts evaluate a $90-100 (average $93) target price? Cash ? Could you detail the right calculation ?
olddog967, thanks for the EPS number of $2.67 I agree that it's a reasonable recurring EPS number that should give IDCC a current P/E of about 25. But as Merritt told us in the conference call their past sales lump sums aren't irrelevant either - they can be used for many things like buying back stock, acquisitions, etc. So they're an asset too - just like their patents.
In my view, under those circumstances, a recurring P/E of 25 (along with past sales and patent assets that can be sold under the right conditions like Intel) isn't too bad for a company that still has a lot of room to grow. For example, only about 55% or so of the handset business is licensed. We've been told that IDCC probably won't get to 100%, but 90% is a good goal - I believe there are just too many small companies at the fringe to get it all. Above and beyond that IDCC has more growth potential with 5G and IoT.
With the above being said, I hope that if the new PTO potential nominee gets voted in by the Senate, he'll entice the litigants to think more about settling:
<<One of Iancu’s major successes during his practice as an intellectual property litigator was his work in securing large settlements for American tech company TiVo Corporation (NASDAQ:TIVO) in 2012. That year, TiVo secured a $250 million settlement from NYC-based telecommunications giant Verizon (NYSE:VZ). Months before that settlement, Dallas-based telecom firm AT&T (NYSE:T) agreed to a $215 settlement to end litigation surrounding digital video recording technology. Iancu’s bio states that total payments to TiVo from these settlements and others from Microsoft (NASDAQ:MSFT), Cisco (NASDAQ:CSCO) and others exceeds $1.6 billion. The fact that Iancu represented TiVo, a patent owner, against big tech in Silicon Valley will undoubtedly lead to a warm reception in certain patent owner segments of the patent community. Iancu and his firm have a reputation for suing big tech while representing patent owners, and he himself also served as counsel for San Jose-based touch feedback tech firm Immersion Corporation in a patent infringement suit against Japanese tech conglomerate Sony Corporation (NYSE:SNE) involving video game controller patents which ended up netting $150 million for Immersion in March 2007.>>
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