Replies to post #22595 on InterDigital Inc (IDCC)

[Dishfan]

Maddog, I imagine there is a fascinating process taking place right now at InterDigital, and that this process has been underway for some time.

Here's what is going on just beneath the surface:

Market professionals including analysts and institutional investors are studying every aspect of InterDigital in order to properly evaluate the company. In excruciating detail, this cadre of market pros is inspecting:

1. Management competence, reliabilty, ethics and many other factors,

2. BoD competence, control and structure,

3. Patent validity and value,

4. The Business Plan and the likelyhood of accomplishing the plan,

5. All financial statements,

6. Existing licenses,

7. Relationships with major wireless companies, standards committees and trade organizations,

8. Competitors,

9. Many other factors.

This process is going on every day. Janet, Guy, Rip and Howard are talking to these folks constantly. If InterDigital wants to be successful, they absolutely must "cater to" these pros.

Two important results:

1. Over time, the true value of InterDigital becomes apparent as strengths and weaknesses are uncovered.

2. (This is the important part) Weaknesses tend to get fixed. If, for example, InterDig is overdoing ESO's, they will hear this loud and clear from these pros. Then management has a decision to make - continue what we're doing and lose shareholders, or, change what we're doing and see new buyers and higher stock prices.

IMO, InterDigital is serious about becoming a major player in the 3G world of wireless and beyond. And, they know they have to "conform" to basic corporate standards to get there.

That's the "market" at work.