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InterDigital, Inc. Message Board

  • pirates144 pirates144 Aug 8, 2007 8:20 PM Flag

    "Operating costs surged to $63.9 million from $35.9 million"..That is

    the main reason for the sell off. I've owned IDCC off and on for 5 years or so and this is never a good sign for the institional people. Flat reveues with higher costs means lower profits and profits are what drive a stock price. Having said that there are good things in the future for IDCC, but it is being revalued right now. With 46 Million shares in the float this is still a $1 Billion company. Not a small cap. Not a good sign that it closed at the low on such a strong day in the market. This is not done going down yet. Do not buy unless you like a 1 out of 10 shot. The time to buy may come at somtime tomorrow, but likely it will not be until the next day or 2.....It will be interesting and I will be watching on my streamer for the buyers to come in........

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    • ryanins Aug 9, 2007 2:16 PM Flag

      maybe i'm wrong but i think under $20 isn't bad. to me the worst looks like $15 . i'm hoping $19.55 will be a low , could get a bounce, sell. rebuy after it comes down again. i've followed idcc for a long time, was finally waiting for this dip. good luck to all.

    • What do you all think is the right price to go long this stock?

      • 1 Reply to satya_73
      • The more I read about their future I'm not sure when to get in. This new chip is a big deal and how many companies go with it will make this a $30 stock or a $15 stock. I have to research more. I know I try to never catch a stock that is falling this hard on way higher than normal volume. That coupled with the markets not looking so good has me scared. (that could be the best time to get in).....Sorry I can't give you a better answer

    • Here's what IDCC management said during the Q2 conference call regarding "operating expenses"...

      "Second quarter 2007 operating expenses of $63.9 million increased $27.9 million compared to second quarter 2006.

      The increase was primarily due to (i) a non-recurring $16.6 million charge relating to the Federal arbitration award,
      (ii) an increase in litigation and arbitration expenses, (iii) increased patent portfolio amortization, management and maintenance costs and (iv) increased investment in the development of the dual mode terminal unit ASIC.

      Excluding the charge associated with the Federal arbitration award, second quarter 2007 operating expenses totaled $47.3 million, compared to $43.6 million in first quarter 2007.

      The increase in second quarter 2007 operating expense over first quarter 2007 was due to higher litigation and arbitration expenses (which totaled $9.9 million), partially offset by a slight decrease in other operating expenses."

      • 1 Reply to chazridgeway
      • Good post on the last one. I did read about the arbitration thing, but didn't realize they put it in operating expenses. Still the 47.3 to 27.9 from last year is not headed in the right direction. I know it's complicated and some of it went to some new products, but the street in general just hates this area going up with revenues flat. It will bottom out soon and then when there is news it will gap up like $6 like it always does. If you look at a bar chart for the last 3 years it is pretty consistent. They are very good in the courts.....

    • Thanks for this post.

      Excellent advice.

      I suggest a follow-up question for IDCC management after the Q2 conference call:

      "How far is IDCC management willing to let the current IDCC share price and valuation sink -- before they might begin worrying about IDCC being bought out by a major player or rival in the sector?"

      Remember, someone leaked a buy out rumor to the Financial Times a few months back.

      As IDCC's share price plummets to new depths -- has management opted for a new strategy -- and would they welcome such a buyout?

      The IDCC management certainly would profit, and the new CFO is an expert at mergers.

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