Replies to post #22326 on InterDigital Inc (IDCC)

[loophole73]

Bluesky

Wow and here all along us dumb Texans have believed that this business model would produce the highest margin. Here we also believed that all of the firesale settlements have been the sacrifice to attain steady and defineable growth. This company has given up more of its margin through deals than Mickey and I can count. This company has made the "we believe" speech for 30 years and WS is in the "you better show us" mood.

The good thing is that if Nok, Sam and Ericy pay according to plans, then IDCC can show WS the 2004 royalty revenue via a bank account because it will be prepaid in 2003. Whatever multiples WS affords the company is anybody's guess. The idea of finally having the ability to state "we have" will carry a lot of weight on WS. The worm will finally have turned for ole Rodney D. Suddenly respect will actually permeate its strategic relationships. Our employees will no longer receive jackets with targets on the back when they go on a hunting trips with our European strategic partners.

So, I guess it does not matter how our share price gets set or what you call sacrifice, margin, growth or whatever. The growth will be apparent as other licensees join the paying crowd. The one thing that is certain is WS will need to be shown and we will finally be in a position to give them a real show.

MO
loop

[EconEli]

PS (price to sales) is preferred over PE (price to earnings) because a small company has to keep on reinvesting its cash flow in its growth strategy otherwise it won't get growth multiples.

Yeah, but this isn't your typical small company with your typical small company business model. Thanks for telling us what PS and PE stood for though -- I don't know about the tohers, but those pesky PE / EPS thingamajiggies always get me confused.

:-P