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InterDigital, Inc. Message Board

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  • faosto faosto Jan 27, 2012 1:55 PM Flag

    Once buyout hangover fades

    My God Downstock you are all over the board, both in your posts and in your opinion. One day you are thoroughly disgusted with management and how it has failed you and everyone else by not being able to sell the company; the next day you are praising their strategy of not selling and you say, "I think people will start to see the real potential here to license patents and/or sell off some patents...If you look at IDCC's revenues and net income along with strong cash position and compare it to its peers you will see a stock that could easily be a $50-$55 right now." And you say that management needs to regain the trust of shareholders. You are wrong.

    The current price is temporary, and is simply the predictable market reaction to no sale. This is merely a temporary imbalance in the supply-demand of shares. The speculators all bailed, causing a temporary over-supply. Also, there may be some skepticism when a company puts itself up for sale and then appearances are that no one wants it (not knowing the price at which they were WILLING to sell.) The facts of this company have not changed. Go study the historical pricing on the shares of IDCC. You will see that they were in the $40's before ever announcing the sale idea. You will see back then that analysts were still estimating $55/share. It will only take a couple quarters of over-peformance on the EPS for this to bounce another $5, and over the next two years, $20-$30 more.

    Instead of opining on the daily direction of the wind, go spend several hours researching this company - who licenses from them, how much is from 2G, 3G; how much of a market they still believe is untapped in the 3G space; what they expect from 4G and LTE, and so on.

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    • I believe in the technology and think the company is in a sweet spot. I have concerns with mgmt and yes I have bashed them. However, when appropriate I will give them credit too. That is what I was doing with commenting on insider buying.

      If you look over time my opinion has been pretty steady..if they execute this could be a $60-$80 in 3 to 5 years. I thought they would be lucky to get $80 in a buyout. The only difference is before people were more optimistic than me, and now they are more pessimistic than me. I have actually been fairly consistent in my upside projections. I have had concerns with mgmt all along and seeing how this played out I think my concerns were valid.

      • 1 Reply to downstock
      • Not much has changed with IDCC except the perception of it, and that insiders bought shares.

        I believe that those 3 to 5 year horizons for share price appreciation are too far into the future.

        If any one of the big players decides to make a hostile bid for IDCC all of the rest will react and up the price. There is an unstable truce that can be broken anytime. I don't consider the outcome of the strategic initiative something upon which an extrapolation can be made.

        I kind of see the strategic initiative as one of those efforst to get panda bears to mate. Didn't work this time but could hapen next time without such an elaborate set up.

        The patents are are good, the Co. Is profitable and growing, the market is red hot

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