Usually when a company puts itself up for sale it means one of two things 1. There is a big earnings shortfall coming up the next quarter 2. The officers of the company know that it will be a long costly struggle to get their "perceived" value out of the licensees.
If you are long you need to protect yourself with puts or get out of the stock before the end of today.
There will be no good news to report after the close. You can take it to the bank.
Cut the #$%$ Zevach. I have never seen earnings released this early. Maybe JohnnyG has but in the six years I've been following IDCC it's always late, good or bad.And what do earnings matter anyway in this context?
Zevach, your enumerated points 1) and 2) are probably valid. Earnings will not be decent because of the absence of revenues from LG, and you are also right that licensing is a slow way to realize the potential value of the Company's extraordinary patent portfolio.
That is precisely why the Board of Directors made the decision to put the Company up for sale -- because the market for top patents is white-hot right now.
And that is why you are wrong in the conclusions you are drawing from your correct factual assertions 1) and 2) -- the stock will not fall significantly because it is not being valued as the stock of a going concern but as a buyout candidate in a white-hot seller's market.