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InterDigital, Inc. Message Board

  • investora2z investora2z Apr 12, 2013 11:39 AM Flag

    200 DMA has to hold

    The 2012 results provided fillip to the uptrend. The revenues more than doubled from $301 million in 2011 to $663 million in 2012. During the same period, the net income tripled from $89 million to $271 million. On a 52 week basis, it is up around 28% but it has broken below the 50 DMA of $46. The 200 DMA around $42 should provide support. The volumes have been tepid, and the recent recovery from $43.80 has lost steam. The stock is still 100% up from the 52 week low of $22.37, and the current correction may be an opportunity to buy the stock. It is, however, important that the 200 DMA holds, and there is a strong rebound supported by increase in volumes. It is interesting to note that the all time high of the stock is around $76, and that will an interesting target to chase. The company has been successful in monetizing its patents and is one of the recent success stories of the IPR business. In fact, the sale of patents to Intel (INTC) last year changed the trend for the stock. Though the price per patent was not very high, it helped to company gain experience (and money). Presently, several infringement lawsuits are being tried in courts as smaller companies try to enforce damages / royalties through litigation. Recent examples include MGT Capital Investments (MGT) which has filed a $4.5 billion law suit against gaming companies. MGT has a market cap of less than $12 million and has been on an uptrend recently on speculation about settlement of this lawsuit. With the success of the Intel deal under its belt, IDCC can always be on the lookout for monetizing other patents it possesses. It is also on the lookout for intelligence related to potential infringements of its patents. Its future success is dependent on its ability to leverage its IPR portfolio.

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