Motley Fools backtrack after their article late yesterday
They should be called Motley "Tools"...first they reported on the sharp decline a day AFTER it happened, and now they report on the rise, a day AFTER the news. Do people really pay them for advice?
InterDigital Shares Surged: What You Need to Know
By Rich Smith | More Articles September 28, 2011 | Comments (0)
CAPS Rating 4/5 Stars.
$53.76 $2.27 (4.40%)
+ Watch IDCC
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More about IDCC My Stock Just Got Crushed InterDigital's Shares Got Crushed: What You Need to Know BROWSE ALL IDCC ARTICLES
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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: After booking a tidy 4% gain yesterday, shares of mobile telephony IP shop InterDigital (Nasdaq: IDCC ) are moving even higher this morning, up as much as 10% at one point.
So what: Yesterday, InterDigital's board announced that it's definitely interested in selling the company "in whole or in part."
Now what: That "in part" part is key. Rumor has it, you see, that interested buyers were bidding as low as $1 billion and $2 billion for InterDigital -- numbers that spooked investors hoping to see something more along the lines of the $4.5 billion that a consortium including Microsoft (Nasdaq: MSFT ) , Research In Motion (Nasdaq: RIMM ) , Apple (Nasdaq: AAPL ) , and EMC (NYSE: EMC ) paid for Nortel's patent portfolio earlier this year, or the $14 billion that Google (Nasdaq: GOOG ) shelled out for Motorola Mobility (NYSE: MMI ) . This fear sparked a sell-off in InterDigital stock on Monday.
Turns out, however, that the $1 billion bids were actually for just a part of InterDigital -- meaning the whole of the company could still be worth something in the neighborhood of a Nortel (or a Motorola?). And this confirmation, Fools, is why InterDigital is going right back up again.
What price will InterDigital ultimately fetch? Will it find a buyer at all? Add the stock to your Fool Watchlist and find out.