Replies to post #248770 on InterDigital Inc (IDCC)

[olddog967]

ziploc: The problem is that his recent Buy rating took into consideration Nokia's history of delay. So why does he now use that as a justification to change his rating?

"Given Nokia’s past with InterDigital (stall and delay through any and all legal means in any jurisdiction or country – approximately 10 court cased filed by Nokia since 2003), we believe it is possible that Nokia attempts another Hail Mary pass or two to delay the proceedings, but we do not expect them to be successful. 3G agreements with Nokia, Sony Ericsson, and Motorola could add hundreds of millions of dollars of licensing revenue to InterDigital over a five year period, and this leads us to project InterDigital’s earnings power at over $3.00 per share if it signs Nokia and Sony Ericsson, and the licensing terms are structured as fixed payment/ratable deals."

in reply to:
TC has shown us much courtesy and I thank him for this. I feel,however, that the critical element in his thinking is that Nok will not sign soon. He feels there is an "absence of near-term catalysts to significantly impact share price". I have a note posted on the border of my computer screen that reminds me:"Nok will litigate in every possible instance".

[nicmar]

"We believe Samsung’s license leads to a 3G license with Nokia and Sony Ericsson by the end of 2009."

The above was Tom Carpenter's words when he raised idcc to a buy. Nothing has changed other than the share price and we are now up exactly 4.91 or 17.7%. This neutral rating does take away from his ratings credibility in what is otherwise a stellar report. I would think he should obviously know that a neutral rating could have the effect of dragging the share price back to 27.61 when he issued the buy rating.

It will be interesting what good this will do with idcc's share price as it isn't a positive and I think there is an agenda in the neutral rating. I do believe we would have been better off if Carpenter hadn't issued either rating or either report. The totality of one after the other is negative. Just my honest opinion and it is my hope that the investment community ignores his rating as I believe the rating in itself is micro management at the least.

That being my opinion, Carpenter is the most valuable analyst we have and I think it would be a shame if Jimlur over reacts and does not share his information because he becomes justifiably upset with a few posters. I always try to wait 24 hours before making that kind of decision and I wish Jim had waited until he cooled down. ... on the other hand, I can't criticise or blame him. I do doubt if JimLur actually agrees with Carpenter's downgrade. jmho. .. nic