Replies to post #75418 on InterDigital Inc (IDCC)

[TFWG]

Did anyone notice that TC raised his FY '04 revenue target by $3.0M for Sanyo, but only raised his FY '04 eps one cent? MO, TC should have raised his estimate by five cents. If you look at the Sanyo impact on '05, TC raises FY revenue $7M and '05 eps six cents. Why are '05 dollars worth more than '04? Mr. Carpenter has written the most conservative bullish report I've ever read...{g}

The more I read, the more I'm convinced longs are in for a bullish run as results are released and knowledge of this company grows.

[spencer]

I also was not happy with Howard's "Economic Discussions" statements without having a time table when these discussion materialize into real licenses plural.

We've had 3 new licensees since HG's statement about being in more simultaneous economic discussions than the company had ever been in before. Maybe they were only in economic discussions with HTC, Sierra, and Sanyo (and maybe Sierra or Sanyo was the other licensee that Merritt promised before end of '03). Maybe prior to the end of '03, the company had never been involved in more than 2 economic discussions at the same time. So the company may not be in any economic discussions right now.

[The Count]

Jai,

I appreciate your contributions to the board. I read all of your posts, and while I disagree with some of your opinions, I do respect your knowledge and enjoy your input. However, this statement from your post is a pet peeve of mine, so I feel compelled to comment.

Bottomline, if the stock goes up, I'm very happy and have no complaints and will praise these guys (good job on the Carpenter report). If the stock goes down, I'll bitch and moan about management and what they are doing wrong. (only one license this quarter came from the economic discussions).

To bottom line it and decide stock up, everybody is doing great work, stock down, they're all bums, does not indicate reasoned analysis. That mindset is simplistic and leads to unfounded evaluations. There are many, many factors that affect stock price, so to use it as the sole criteria for judging management is terribly flawed. What really bothers me about this way of thinking is that it leads to poor decisions. Stock up, let's give these guys whatever they want in options, etc., if the stock is up I don't care how much we give away, I'm still ahead. Stock is down, throw them all out - don't look at the company's results and business plan, I want a higher price now, and tomorrow and every day after that.

What if you bought your stock at $10 in your regular account and bought at $25 for your IRA. Does that mean that IDCC's management is brilliant for your regular investment, but stupid for your IRA investment? Have you ever worked for a company that was struggling or failed - does that mean you were incompetent when you worked for them? Were you working for a company that was flying during the boom years? Were you doing much better work at that time then you had before or since? I do understand that stock price is the way we judge our investment, and it is an important part of evaluating management, but only in a long term sense. To run hot and cold week to week depending on the recent price move is not wise.

Judge management by how the company's business is doing. Are they growing revenues, are they controlling costs (YES, expenses do matter - top line is important, but bottom line is what gets the multiple by the street), are they getting 3G licensing done, is the company continuing to generate commercially relevant patents, are they maintaining a strong balance sheet. If they are accomplishing those and other business related goals then management is doing good work regardless of the recent share price action. If they are accomplishing those goals, then LONG TERM the stock will perform well. Long term success is managements job, not worrying about day to day or even month to month stock performance.