This is exactly what I've been saying for months only to get trashed by pumpers and newbies. They have cash, yes, but they have had no new license agreements in over a year. Their current agreements are ending. Where is the growth projections coming from. I believe IDCC's BOD is scared. Patent technology is not tangible and as we all know, technology moves fast, especially today's mobile technology.
There is, however, a third perspective. A perspective that Fools who are tempted to jump on the stock's newly discounted price should be aware of. While flush with cash today, InterDigital hasn't generated a penny's worth of new cash in the past year. On the contrary, the past 12 months have seen management at this company burn through $65 million in negative free cash flow.
Dukie, at a rate of 65 millon a year they can repeat 2011 some 10 more years.
Copy and paste of fool talk is not a sign of intelligence.
The patents are valuable. The market is fixated right now with software and hardware Issues/patents. Very soon they will get fixated with issues/patents regarding process', transmition etc. that is when IDCC will be rediscovered.
What these AAPL, SAMMY, MMI, HTC etc are doing is selling an additional billon cars and not build any more roads. IDCC will be one of the keys to unravel that mess.
2011 was a rare year of negative cash flow primarily due to LG withholding payments - noot renewing until they can negotiate a lower frand rate. But depite this, regardless, IDCC announced yesterday they expected to be cash flow positive again in 2012.
You don't get it. Current license agreements are ending. They have signed no new agreements. The mobile market is on fire and IDCC has done nothing.
IDCC BOD is sounding like a politican these days. " I will cut unemployment, decrease our dependency on foreign oil, create jobs, and reduce health care costs" Only problem, they never tell you how.
I've been following IDCC before there was Yahoo. The BOD is scared. They had no takers and are now faced with having to create earnings for shareholders and they have no clue where the earnings are going to come from.