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InterDigital, Inc. Message Board

  • brian.lemkeis brian.lemkeis Dec 1, 2011 6:54 PM Flag

    I'm out. Buyout is NOT going to happen and

    when the news hit's officially, this stock will drop like a lead balloon.

    I like the long term prospects of the company, but not willing to lose capital on the short term drop when the company finally comes out and announces that they will continue to operate on their own.

    Here's what most experts are now saying: (I'm paraphrasing several stock subcription sites I subscribe to) Due to economic macro issues in Europe and Asia which are affecting the world economies, the interest in IDCC has been muted and it appears no buyers are willing to pay what IDCC management wants. The debt crisis in Europe is far from over which has played a very big role in the lack of buyers willing to pay a premium for IDCC.

    I'm not going to risk it anymore. Sure, there still is a chance IDCC management pulls a rabbit out of the hat, but the oddsmakers are now almost all in agreement that a buyout will not happen.

    I'd rather be safe than sorry. If I happen to miss the ride up, then congratulations in advance. But since I never put more than 6% of my portfolio in anyone stock, I will be just fine with my other long positions if this market rallies.

    Tip: as a hedge, I started accumulating UVXY -2x leveraged on the VIX. This stock has almost no volume, but when it pops, it pops big. Any bad news and this one will be well over $20/share in a blink. Put it on your radar...and if it drops to the $14's, then buy a bunch!

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    • Hey Eric/Linda third alias! At least try to post somethin different scumbag!

      What the he'll do you think has been happening for 6 friiggin months?

      They are not playing twinkies!

      This puppy is sold. I gaurandamnteeit!

    • You would think you just killed their mother the way some of these posters re-acted. Brian..sorry to see you go..you may be right, but more importantly it appears that you've thought it out and made a decision that best fits your risk tolerance. Best of luck to you!

      • 1 Reply to downstock
      • I could care less what others think. But yes, you are right...alot of people are so emotionally tied to this stock it's scary. I imagine alot of people have ALL their capital tied up on this hope ball that IDCC will get bought.

        Well, this is what one so called expert recently wrote.


        Wireless patent troll InterDigital's bid to sell itself seems to be failing.

        Google's $12.5 billion bid for Motorola Mobility, following on the $4.5 billion sale of Nortel's patents, and the $9 billion valuation put on the value of Alcatel'-Lucent's 18,800 patents got the board of InterDigital all excited about the prospects of cashing in on its patents.

        Before any bid for InterDigital was made, the company's share price shot up to give it a market cap of over $3 billion back in July - a figure which has little to do with InterDigital's revenue generating abilities of under $70 million in Q2.

        However, waning interest has seen a fall in InterDigital's share price leading to market cap of under $2 billion at the end of last week and $2 billion yesterday.

        Various reports say that bidders are offering upwards of $2 billion for InterDigital. A 'large Asian mobile device company' (Samsung locked in lethal legal battle with Apple?) is said to be a bidder. At $2 billion, there is no upside for current shareholders.

        The problem with the high values being put on patent banks is that no one expects the buyers of these patents to use them in productive ways to create new products.

        They are simply being bought as a defensive ploy in the increasingly bitter mobile industry lawsuits.

        Many good ideas encapsulated in these patent banks are likely to be left unexploited, and the huge sums spent to buy the patent banks will leave companies with less to spend on improving their products.

        So if the perceived value of these patent banks falls, it will be a good thing for the wireless industry.

        Bottomline: Alot of IDCC dreamers will get hurt if and when management announces the news that IDCC is no longer for sale. From what we are hearing, there's a very good chance of that happening before years end.

        --------------------------------------------

        This is just one guys opinion. Everyone should do their own DD. If you disagree, then by all means, hold onto your shares and buy more. I made my move based on what I think will happen. So be it. Get over yourselves!

    • Brian.Linde,

      Why would the problems of Europe and of financing matter if the buying company could buy IDCC out of existing cash?

      Companies like Apple, Google, and Microsoft?

      No financing or banks needed! In fact, perhaps it is better to invest cash, than hold it in a bank or in paper currency / debt.

      Think about it - Tomcat

    • double leveraged ETF's? Do YOU know even know what you are getting into? Read this: http://news.morningstar.com/articlenet/article.aspx?id=271892

    • This was $35-$40 pre announcement loking for buyers. THAT is where it would settle with no buyers. Sorry got out near the low.

    • I'm paraphrasing several stock subcription sites I subscribe to.
      -----------------------------------
      Sounds like you're wasting your money right there. People that make money in the stock market do not need to sell newsletters if they were truly making money on the stockmarket.

    • Geez, this stock is too risky but a 2X leveraged short ETF is just the ticket to strike in rich. Hard to know where to begin with that one so I won't even try. Almost as bad as the schmuck who left here who was going to make it all back day trading. Notice I'm not naming names. So many broke hearts and dreams in this small, dry and dusty little town of ours, I could almost write a hit country song about it and make all my money back.

    • I believe that, at this price level, it assumes no buyout. Therefore, if the company makes such an announcement, the stock will drop down briefly and move back quickly. If you put only 6% of your captial into this one, don't understand why you worry, unless you just sold and became a basher in order to buy back at lower price.

    • brian.lemke,

      there's truth to that statement, however, you provide no links, therefore you could be full of it, or your stock subscriptions are bunk...

    • Great evaluation of IDCC's current situation and prospects Brian. Don't let xray bother you. He may be a nut with his delusional quest for $Billions, but he's our nut.

      • 1 Reply to realitypatrol
      • All IDCC has to do is reach out to the Asian companies like HTC and Huawie, because they will be willing to buy IDCC in an Asian consortium, however companies like Apple, Qaulcomm wouldn't want the Asians to have those assets, so they will be forced to bid, just to keep IDCC away from the Asian companies.

        The negative leak by DR and FT a couple weeks ago suggest the Asian companies don't know what's going on with the process, therefore that means the process is still going on with the companies who have advanced to 2nd round...

        If Apple and Intel really did back off, IDCC would reach out to the Asian companies, and DR would have actually released a positive leak...

        Also there's still a lot of call activity in the option market and not as much put activity, so that also indicates that your source is most likely bunk, because I guarantee you that the big players making million dollar bets in the option market got better info and sources than you do...

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