Replies to post #229062 on InterDigital Inc (IDCC)

[e5oo]

In view of all the millions spent on litigation, in all the different venues, I would posit that they deserve no good will looking back or moving forward. As has been stated, the amount awarded was less than what had been anticipated. Pay up and forget about comingling the issues.

[ShallowMind]

OK, one last shot here at clearly stating MY OPINION.

If you are an investor you want the stock price to rise, right? Well, that's the starting point for my position.

Now, we have 2 distinct disputes with Samsung - one for 2G and one for 3G. 3G is the brass ring for us, while on 2G we're close to getting our hands on $160M plus some interest, and some have posited that 2006 royalties amount to another $20-30M. Call it $200M pre-tax for 2G.

The issue is that we haven't yet painted Samsung into a corner on 3G. We're all assuming that we will, but when you ASSUME, you make..well, you know the saying.

Here's the crux of my stance: the $200M plus IS NOT GOING TO MOVE THE NEEDLE ON SHARE PRICE, at least not much, so it isn't of much value to me. Meanwhile, a signed, amicable 3G agreement will rocket us higher, plus it will push others much closer to signing on for 3G, and with each incremental agreement, more rocket fuel.

So...if I have a choice of trading some SMALL PORTION of the $200M to 1) eliminate the downside risk of a bad ITC decision and 2) ignite the booster rockets, by coaxing Samsung to sign a 3G agreement, then I'll trade $10M or $20, maybe even $50M to do it. Let's put this in perspective: $50M is LESS THAN $1/SHARE (after-tax)!!!!!

Thankfully none of us here has any input to IDCC's bargaining tactics, but I would wholeheartedly support Uncle Billy if he took this tack!

All JMHO.




Duke

[gio]

I don't think anyone is saying to give away money. The point is, if I understand it correctly, to use the money owed by Samsung as a concession in the negotiation for 3G licenses.

The ITC action is far from over and the outcome is anybodies guess. IDCC can't assume victory. Samsung can't assume victory. I hate to say this but the risk to IDCC is even greater than the risk to Sammy. IDCC loses and the hope of seeing $$$ from Sammy and other unsigneds gets delayed years (again). Sammy loses and they simply have to sign to the terms that are on the table and are FRANDly. Sure, it will cost them a little more on the bottom line but it won't kill them.

If IDCC can use some of the 2G monies to get Sammy to settle then it is a good use of those funds. They will save legal costs, avoid the risk of losing, and take the wind out of the sails of others, like Nokia, that are saying they don't have the goods or are asking too much.

[dmiller]

What is so hard to understand? In ONE WORD 3G!!! 3G...did I say 3G?

Wallstreet could give a rats @ss about one time lump some money. They want some clarity about earnings going forward. This stock will not move very much for very long without a 3G agreement. Less litigation and more clarity with earnings they can count on every qtr.


"1/23/06 Born On Date for IDCC"