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InterDigital, Inc. Message Board

  • jeffreeK jeffreeK Dec 22, 2011 12:27 PM Flag

    Have things "turned"...???...Looks like...

    maybe they have...
    Time to buy ALL dips...???

    Longs deserve to hold ALL cheap shares, right...???

    of course, cheap is a Relative...

    Those guys who shorted shares in the $18's...well That was cheap...but Costly...

    right, jlls...???


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    • i recommend buy and hold up to as high as 100 at least so especially at these levels. IDCC's "stock market version of Mkt cap" = 1.8 billion. Of that, 500 million is cash net of debt. The R&D dept has been valued at 600 million by Mpartners based on track record and expected future production and ultra conservative value of those patents. And 222 million of the mkt cap is their net tangible assets = and that includes patents at cost, after depreciation. So already 1.5 billion is built into their market cap not even considering future expected earnings or the market value of the patents. What if we just look at the future expected earnings (EPS = 1.82 2011 and 2.58 per share in 2012 etc). And note growth should accelerate if they are not bought out and that could be startling growth if they get 1.5 % royalties on ASP of 4G and LTE devices. If the average expected future EPS growth just continues at the current rate of about 40% YOY (being conservative since it is expected to drastically accelerate as 4G and LTE royalties opposed to steady growth). The stock market then appears to be giving these expected future Earnings (1.82 in 2011 and 2.58 in 2012 and so on growing at 40%) an estimated net present value of about $300,000,000 or about $4.00 a share (which is on the extreme low side implying a higher borrowing rate than they actually have, approaching 200% APR). This is how the stock market sees it but then I am not sure where it studied Finance either, or if it did. But if you substitue a borrowing rate of something closer to reality, but still high like 10%, you wind up with an NPV of about $122 a share just for the expected future earnings (equates to about $5.5 billion). So even with no market value assigned to the patents and no premium assigned to the buyout possibility, the company should have a market cap of 1.5 billion plus 5.5 billion. = 7 Billion or $154 a share. So forget the stock market here since it is fickle and unreliable, emotiona;, ignorant and has 'issues'. Deep pocketed OEMs with calculators should be able to add, subtract and do NPV calculations. Businesses live in a different world from the average cavemen with an iphone and a brokerage retail account. They have more money. They will not pass up this gem in the rough, this sitting duck, this gold mind, this ... opportunity.

    • sure jeffey 2 bad that u dream ur bud jlls shorted in the 30's 40's 50's 60's 70's 80's but never in the teenies mr. idcciot

      ur bud jlls has made a smll foretune off u and ur village

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