""With more than 12,000 patents and patents pending, Interdigital is seen by some as the grandfather of the technology patent movement. Interdigital, like VirnetX, focuses on wireless technology. The company's software is used in the majority of all 3G cell phones and wireless networks, helping to manage bandwidth constraints, network capacity issues and security.
In contrast to Rambus with its lumpy, occasionally massive one-time payments, Interdigital likes to secure long-term revenue streams. As the company has secured new long-term licensing arrangements, the company's sales -- and profits -- have steadily risen. By 2009, the company generated a company-record $284 million in free cash flow.
Although Interdigital's sales and revenue have been remarkably steady for this type of company, a few one-time payments are nevertheless spiking sales and profits this year. Analysts expect revenue to rise more than +20%, and earnings per share to surge more than +80% to about $3.20 in 2010. That surge also means next year's results will show a bit of a pullback.
With that kind of financial performance, coming up with a fair value for the stock is indeed tricky. Dougtherty & Co. uses a weighted average of the next 10 years of cash flow, arriving at a target price of $36 -- roughly +40% ahead of current levels. "" END QUOTE.. CREDIT SEEKING ALPHA
Sorry if anyone has previously posted this.
"They otta plug in the close to $600Million in cash...takeout worth over $40 andthats still cheap"
Another misconception just like "news drives pps".The only way shareholders directly benefit form cash pile is when company declares dividents.As far as share price appreciation is concern forget about it.In many cases a pile of cash acts as drag on share price especialy for high growth stock when management doesn't know what to do with it.Typical high growth company aquires other businesses hire more people,use cash as a leverage to borrow money and use for expanding market share.
Having lot of cash helps in case of market malaise and that is were second benefit comes handy.
There is only one option left on the table for IDCC,QCOM model.If they declared dividents I would pronounce IDCC as good as walking dead.
Another possibilities: earning per share and stock price appreciation rarely track each other,rather oscilate around but long term trend direction is similar/recent George Soros seminars/.This could apply to IDCC.Since IDCC outperformed NASDAQ at bottom of recent cyclical bear run,recent weaknes of pps could be attributed to so called "mean reversion" fenomenon.
I bet you get sick an tired of me by now,but here is another idea:stock price/share stuck flat or going down is not always bad as long as average trading volume keeps drying.During such periods you have to have signs of accumulation.Occasional spike in volume coinsiding with share price gapping up.Absence of share accumulation signs would be more negative than prolonged downtrend itself.If instead you notice symptoms of share distribution than you should realize that strong hands are selling.One scenario requires immediate action: increasing average daily volume on downtrend.Sooner you notice what's behind daily stock fluctuactions more succesful investor you will become.
You spelled dividend wrong and your blatant opinion about them is definitely weird..
Just those two things bunched together was enough to raise my provoked response...
Normally, I would never correct your English..
Pay no attention. He gets this way at those "certain" times of the month, if you know what I mean.
Anyhow, a company sitting on a pile of cash is a very good thing. Even in a cloud of uncertainty about what they intend to do with it. Ridiculous to think a lot of cash drags on the share price. IMHO Much preferable to a large amount of debt.
I'm dead serious.Cash is nenver "bad thing",it's more of foundation supporting share price in bad times.This is probably main reason why IDCC showed extreme relative strenght during market collapse 2008-2009.But we are not in bad times anymore and cash should be put to work.Obviously sending every shareholder a check is not going to happen and declaring dividents is not an option.
IDCC has to show CONSISTENT revenue/profit growth of 30% or more q/q,year/year not just cash flow and pps appreciation will follow.
Why is this concept so impossible to accept to most investors?
This is basic definition of how shareholders of publicly traded companies should benefit.
I think my English is just fine/relatively speaking/.What bothers you is totaly different vision I have of how to view market/individual stocks/.Don't worry you are in great majority.Most of my questions on other message boards are left without response.And that's ok.I don't want to be just another member of "loosers anonymous" club like you.
I suggest you keep your IDCC shares til hell freezes over,send you hard earn cash to your broker when you get margin call,listen to "talking heads" pushing this stock and wait.
Good luck and I hope you will not have to wait 20 years.