PR isn't substance. It might help for a day or two, but no longer. There won't be a settlement with Nokia -- not as long as they have litigation options and those stretch out for years, not months. We missed our chance to settle with Nokia. They're hurting now as Apple and RIMM and LG and Samsung take worldwide market share away from them in the smart phone market. They are not in the mood to pay IDCC $300 million.
Interdigital will have to make do with what they've got and that is an excellent cash flow and transparent earnings. Litigation expenses with Nokia will cut into earnings, but say IDCC still earns $2.25 per year going forward -- assign a reasonable high tech multiple of 15 to those earnings and you've got a $33.75 stock. That's what we can look forward to a year from now.
The froth and speculation of a $40 to $50 stock price blew away when Merritt blew off his chance for a settlement with Nokia.
It's too bad, but there are consequences for really stupid decisions and Merritt made a world class one. Having said all that the stock is very cheap at the current price.