Notable   posts and threads related to

Risk and Reward

Investing in InterDigital

Updated  December 31, 2006 

Posts here and in archive 1 are by: Learning2Vest, mschere, nokiashill, Catchnrel, Desert dweller, drrtl, Alaska gk, The Count, lastchoice, olddog967, Monterey2000,  Gamco, bulldze, My3Sons87 Danny detail, Data Rox, dmiller, j70k , JDBJMB, sinnet14, DannyDetail, sailfreeee, sonic22, rooster, dndodd, ellismd, revlis, Learning2Vest, lastchoice, loophole73, My3sons, The Count, lando 1, j70k, vg future, optionchain, kikoboer, ebelog, whizzeresq, jimmylee, dmiller, lastchoice, IDCC2003, spree99,, nabokov, dndodd, xdx, Corp Buyer, olddog967, MTJBKH, lucky57, ed ferrari, snowblow5, GrnAcrs, Vexari, redbarn, SSALNER, grither, Dave Davis, Plumear, MSC290, Learning2vest, olddog967, Ellix, dndodd, revlis, nokiashill, hi bome37, vgfuture, songioan, Bill Dalglish, mschere, hoboso 517, badgerkid, GAMCO, TFWG, sjratty, dndood, spencer, nieves, dboone, kajo7710, Danny Detail,  Data Rox, my3sons, ellismd, jtaylor, loophole73, nicmar, MMC89, pianoman1953, ellix, GAMCO, gman1962, chartex, lotoworld, idcc2006, TFWG, ellismd, ubx, biggeneg, captainslog, badgerkid, rmarchma, uptick, JimLur, rooster, chartex, bulldzer, Jim Charts, nabokov, infinite q ,mschere, drrtl, and orientbull.

What these "best posts" on InterDigital's RISK TO REWARD Investment Potential below are about:

Every golfer faces risks and rewards and so do all investors. What are the potential risks an investor in InterDigital today faces? How much risk is there that InterDigitals current share price will fall --  and by how much (modest fall, precipitous fall)? What would it take to bring shares down to the teens? Or the low twenties?

How is InterDigital doing on cost-containment, legal expenses? Will acquisitions help or hurt InterDital's bottom line? Will InterDigital declare dividends? r buy back shares? What would happen if a bidding war ensued by the likes of Cisco or Microsoft or Qualcomm to buy out InterDigital for its rich patent portfolio?

What is the upward potential for the InterDigital share price? If another 3G license is signed? If another top-six 3G license is signed? If Nokia, with 35% market share is signed? If InterDigital reaches its goal of ALL 3G wireless terminals (eg cell phones, pda's etc) are licensed? And the after tax/overhead royalty is more than $0.55 per device? And the annual market is 1 billion devices? And InterDigital has only 55 million shares (That's $10 per share in earnings), And the P/E ratio (share price to earnings) is 10? or P/E is 15/ or P/E is 20? Or P/E is 30?

What about the impact earnings from other parts of InterDigital's successful business model? How about a balance sheet with hundreds of million in cash?  Is a stock buyback or a dividend program better for shareholders?

Does InterDigital have the most favorable Risk to Reward ratio among mid-cap wireless communications firms?

There's plenty of give and take, helpful information and keen insights among the I Hub posts and threads here - on all sides of the Risk and Reward topic.

The ANALYST REPORTS on InterDigital available here on WirelessLedger generally include a section on Risk vs Reward. Check out these very helpful analyst reports here.

See also: Links to "best posts" on these topics related to InterDigital.

Future 3G Licensing and Royalties  General discussion of how InterDigital is doing in adding 3G licensees and a stream of royalties to its revenue. For specific discussions of Nokia and Samsung licencing, see those particular topics under "Best Posts."

Samsung 2G/3G Licensing Observors believe that Samsung, already in an arbitraion process with InterDigital over licensing fees, will the the next big revenue producer for InterDigital. How is progress on that front? What are the implications?

Nokia: Past and Future Licensing and Royalties    Progress in licensing cell phone market leader Nokia for 3G. Includes information and comments on Nokia-InterDigital litigation in Delaware (Lanham Act) and the UK (3G patent challenge by Nokia)    Nokia settled a long standing arbitration and federal court litigation over royalties on 2G/2.5G wireless devices with a Nokia payment to InterDigital of $253 April 27th 2006.

New Technologies How will emerging technologies affect InterDigital's revenue stream? How successful is InterDigital in inserting its patented technologies in new standards for future wireless communications?

Also see these other related WirelessLedger reports

Understanding Intellectual Property

Understanding the Standards-Setting Process

"Risk and Reward" Posts and Threads

(Investing in InterDigital)

(generally most recent are first below)

  Editor's note: The Investors Hub Message Board on InterDigital offers hundreds of helpful new posts every day on everything related to IDCC. Visit it daily! If you don’t have time to read all the fine posts there, you can catch some of the highlights here by way of these “best posts.” But there are ten or twenty times more posts worth reading at iHub than can be reproduced here.

Graphics/formatting added to many posts for clarity by WirelessLedger.com

Posted by: Learning2vest
In reply to: None
Date:12/29/2006 10:45:57 AM
Post # 174015

Another thought re Fagen's "new debt in 2007" comment - Was shocked to see IDCC's King of Prussia HQ facilities when I attended the 2001 ASM. It is a small one story building surrounded by modular add-on offices(think mobile homes sitting on blocks) located across the back parking lot. Saw lots of engineers walking back and forth to the main building while I was there and reasoned it was time for a better facility.

With the ramp up in staffing since then, there is no telling how many more portable offices are in that parking lot today.

Maybe the new debt planned in 2007 is a mortgage on a spiffy new IDCC HQ facility with state-of-the-art engineering labs and equipment instead of an acquisition. "Whew!" This investor likes that idea a lot better than worrying about the risks associated with consolidating new acquisitions, especially big ones.

Posted by: mschere
In reply to: Learning2vest who wrote msg# 174006
Date:12/29/2006 10:39:36 AM
Post # 174013

IMO:An acquisition by InterDigital of the EMP (WL: Ericsson Mobile Platform) division of Ericsson using the 11 Million treasury stock could be earnings'acretive to IDCC at the right price.Sony was originally offered a 50% interest in this royalty bearing Division but considered the Independent Appraisal at the time excessive .EMP enjoys a greater than 30% market share in UMTS platforms. Six of the top Handset OEM's purchase EMP platforms.

RE:
This investor is still trying to figure out exactly what Rich Fagan was telling us in his PR comments yesterday(copied below).

Did he mean for us to expect an acquisition that would be financed by a combination of IDCC stock and new debt? Why else would he choose to mention the 11 million shares they have in an imaginary "repurchased shares" account and near term plans to "introduce prudent levels of debt" in the same paragraph? In addition, can not see them borrowing money just to buy back more shares.

If he did(?), it's possible he was telling us that they are looking at a fairly significant acquisition, i.e., ~11 million(+/-) IDCC shares(~$375 million), plus a hefty chunk of cash coming from both cash on hand and new debt financing. Given IDCC's current balance sheet and projected revenues under license, I'm guessing they can borrow a bundle at attractive rates. Adding that up has me wondering if Rich was tipping us to be prepared for a really big move in 2007.(???)

mschere

Posted by: nokiashill
In reply to: Catchnrel who wrote msg# 173980

Date:12/29/2006 10:37:21 AM
Post # 174011

why buybacks are so popular these days:

Lower transaction costs for the company, since it only needs to make a few stock purchases on a single stock exchange, rather than distribute money to thousands of shareholders.Potentially lower taxes, since the capital gains tax rate has historically been lower than the dividend tax rate (though that's not the case right now).

Furthermore, the tax only applies to selling shareholders, whereas there is no tax consequence for non-selling remaining shareholders.
The ability to increase the firm's value for remaining shareholders, if the shares are purchased at a price below their intrinsic value.
An increase in remaining shareholders' percentage of ownership in the firm. They now reap a larger portion of the company's future cash flows, because they own same number of shares amid a smaller outstanding pool.
Lower transaction costs for shareholders, who receive a larger percentage of ownership in the company automatically, rather than needing to reinvest dividends by purchasing stock on an exchange.

RE:
Dividends are not for growth stocks!

Jim, with all due respect to yourself and everyone else here clamoring for dividends, you're all in the wrong realm here. Dividends are for profitable, mature, old-school companies with market segment dominance. They entice investors when there is little prospect for growth. IDDC lives (hopefully) and dies on its potential for growth, not market dominance and consistant margin.

If you really believe in this company, you should want it to re-invest in that growth. Sadly, I think perhaps this company's potential has taken so long to develop that it has outlived the ability and willingness of many of you to embrace growth potential vs. income. That said, I really think the future is more imminent than most probably believe. IMHO

Posted by: Desert dweller
In reply to: Catchnrel who wrote msg# 173995
Date:12/29/2006 9:16:00 AM
Post # 173997

Catch the thing you are missing is that IDCC could be doing the things you are saying and still declare a dividend. IDCC could be one of the very few growth stock plus dividend paying stocks out there.

What you are saying is that paying dividends and being a growth company are mutually exclusive. With IDCC and its potential growth, they are not exclusive and it would attract even more mutual fund investors. Wall Street bankers advocate growth companies reinvesting in new companies through acquisitions or through their own stock buy backs because that is where the investment bankers make money. They don't make money when the companies declare dividends. IDCC could be such a unique investment opportunity if they started paying dividends and with only 50 million shares outstanding it wouldn't cost them a whole lot and it would attract a huge investment audience.

We will disagree on this topic all day long. Just because the typical dividend paying stock is a mature company with low growth prospects doesn't necessarily mean if a company pays a dividend, it must be a low growth company. Just because it pays dividends, especially with the favorable tax treatment, doesn't automatically put them in a slow growth mode. IMO it would help to keep management prudent with its future acquisition plans because it knows it needs to come up with quarterly dividend payments.

RE:
Count, I disagree with your basic premise:

Therefore there is no way to "grow their business" by spending money.

I'd bet there are lots of ways, beyond aquisitions. How about a chip (and pronto)? Better PR? More parallel (rather than serial) licensing efforts/actions (think MOT?) Build alliances. More boots on the ground in places like China and India. Grease some palms. Be more aggresive. Whatever it takes.

Posted by: drrtl
In reply to: None
Date:12/29/2006 3:32:23 AM
Post # 173990

InterDigital Re-Ups, Goes Up

By Rich Smith (TMFDitty)
December 28, 2006

Cell-phone tech company InterDigital Communications (Nasdaq: IDCC) has proved to be a pretty popular stock among Motley Fool Stock Advisor subscribers. Since being recommended in April 2006, InterDigital has provided Stock Advisor members a market-thrashing 36% return -- about four times what the S&P has produced.

Today, the company added yet another percent to those returns.

Why today's rise? Well, it seems we're not the only ones who like the stock -- InterDigital is pretty keen on its own shares as well. This morning, the company announced that after going through $187 million of an original $200 million share-buyback authorization, it's ready for a second helping and is upping the authorization to $350 million.

According to the press release announcing the buyback, InterDigital feels confident it can support the increased level of repurchasing based on its "strong positive cash flow generated in 2006, as well as anticipated high levels of free cash flow in 2007." More specifically, CEO William Merritt explained that in addition to continued revenues from its existing royalty streams, InterDigital next year expects to receive "either scheduled license fee payments or new pre-payments totaling approximately $120 million."

Valuation
Based on trailing-12-month earnings, the company's P/E is a mouthwateringly low 7.7. Uncertainty over next year's earnings, however, gives it a forward P/E ratio of 38.6. To further illustrate the dilemma, over the first three quarters of this year, InterDigital has already booked two-and-a-half times the revenues it collected in all of last year. Because of the inherent lumpiness of the firm's royalty-based revenue model -- licensing technology to customers including Ericsson (Nasdaq: ERIC), Sony (NYSE: SNE), and Nokia (NYSE: NOK) -- I find it exceedingly difficult to value InterDigital myself. For that reason, it's hard for me to say for certain whether InterDigital is buying its shares at a good price or a bad one.

What is clear is that the company can easily afford the buybacks. Flush with cash from its latest bumper crop of royalties, it has more than $300 million in net cash on its balance sheet, sufficient to pay for its expanded buyback program nearly two times over. Based on that, and also on CFO Richard Fagan's comment that InterDigital intends "to initiate steps in 2007 to help reduce our weighted average cost of capital and further enhance shareholder value by introducing prudent levels of debt to our capital structure" [emphasis added], I wouldn't be surprised to see the buyback program increased further still.

For more on InterDigital:
Dialing InterDigital
Growth on Sale

InterDigital Dives, Revives
WL: Text for these three articles available in this helpful post from Alaska gk: http://www.investorshub.com/boards/read_msg.asp?message_id=15872190

Posted by: The Count
In reply to: Catchnrel who wrote msg# 173980
Date:12/29/2006 1:33:18 AM
Post # 173990

IDCC is a different growth stock

IDCC has an unusual business model. They don't produce products or sell from stores. Most growth companies need to reinvest their profits in their business to expand. IDCC does not have the same need. They have and continue to increase their R&D, but they are in the enviable position of having cash flow well beyond the needs of the business. The even better news is that when they sign additional contracts the cash flow will grow even more. Therefore there is no way to "grow their business" by spending money. The only way is M&A. If they find a truly complimentry company to acquire, great. I feel it would be counterproductive to buy another company just because they can and are desparate to grow. I am very nervous about big acquisitions, especially if they are financed. Even almighty Qualcomm had huge losses in the arena. I would hate to see IDCCs pristene balance sheet pile on debt for risky acquisitions. Growth will come from successful licensing and the increase in sales of licensed products.

Therefore once IDCC signs the next big license giving them really solid predictable cash flow they should declare significant regular dividends to distribute the cash. As income and cash flow grows, the dividend should follow. It will put IDCC on a whole new set of radar screens. I have to think having a dividend will help the price.

Posted by: Desert dweller
In reply to: lastchoice who wrote msg# 173955
Date:12/28/2006 7:36:38 PM
Post # 173966

I hope at some point they start a dividend which would increase the number of funds that would be able to invest in IDCC. I propose a nice quarterly dividend of $.24 (exactly double that of Q) which would translate into a very high yield compared to most companies out there at the current prices. Based on what wethink the cash flows over the next few years (at least) will be, they would be able to increase the dividend rate at least annually. After the buy back is done, we should have less than 50 million shares outstanding. The company could easily afford to return to shareholders $50 million/year by way of dividends. Coupled with the buy back, I believe that would send a very strong message to Wall Street about IDCC's potential earning power.

Hopefully this happens at some point during 2007 because I personally believe that paying a dividend rate of almost 3% would provide a very nice pop to the stock price because of the increased demand by mutual funds. For a tech company to be able to afford a dividend at this rate with the very high likelihood of being able to increase the dividend in the years to come, would be great for all investors IMO.

Today's news was good but I am still expecting (hoping) for a new license agreement or two in the very near future. The fact they increased the buy back by75% today means they are expecting substantial inflows of money in the near term. We all know about the $95 million from LG plus the other $25 million fromthe unnamed licensees in the press release, but how much more does management think they will be getting soon?

A nice chunk (almost $200 million) will be coming from Sammy some time in 2007 plus how much more from the potential additional licensees. The $150 million increase to the buy back will be followed on by additional investments of some sort because of how much cash they will have on hand. The amounts are mind boggling when you start adding it up, especially to a company with only 325 employees. How many other companies can boast a cash horde of over $1 million per employee, after all of the money spent on buybacks?

Posted by: mschere
In reply to: olddog967 who wrote msg# 173941
Date:12/28/2006 5:58:14 PM
Post # 173954

Analysts will have to update their current consensus estimate of 31 cents earnings for 4th Quarter to reflect the lower outstanding shares.

RE:
IDCC has been buying back the past month or so. According to the last 10-Q, as of 11/9 they repurchased 5.2 milion shares at cost of $150 million. Based on today's announcement, total puchases to date were 6.4 million shares for $187 million. That means since 11/9 they purchased 1.2 million shares for $37million, or an average price of $30.83.

mschere

Posted by: Monterey2000
In reply to: wilco244 who wrote msg# 173896
Date:12/28/2006 12:30:31 PM
Post # 173897

KING OF PRUSSIA, Pa., Dec 28, 2006 (BUSINESS WIRE) -- InterDigitalCommunications Corporation (NASDAQ: IDCC) announced today that its Board of Directors has approved the expansion of its current share repurchase programfrom $200 million to $350 million. The Board based the higher authorization amount upon strong positive cash flow generated in 2006 as well as anticipated high levels of free cash flow in 2007. Under the current $200 million repurchase program, the company has repurchased 6.4 million shares for $187 million as of December 27, 2006.

Our business continues to generate substantial free cash flow. Indeed, in first quarter 2007, in addition to expected payments related to current royalties, we anticipate receipt of either scheduled license fee payments or new pre-payments totaling approximately $120 million from existing patent licensees," commented\ William J. Merritt, InterDigital's President and Chief Executive Officer. "These high levels of free cash flow allow us to build shareholder value in three ways: the advancement of our internal modem product development in support of product launch targeted for the fall of 2007, acquisitions of technology, and significant share repurchases."

"Since 2003, InterDigital has invested substantial amounts in research and product development, funded complementary acquisitions of patents and technologies and expended nearly $300 million repurchasing approximately 11 million shares, or approximately 18% of diluted shares. Our high level of share repurchases in recent years together with this expansion of our current program reflects both our confidence in our ability and our commitment to enhance shareholder value," said Richard Fagan, InterDigital's Chief Financial Officer. "In addition, we plan to initiate steps in 2007 to help reduce our weighted average cost of capital and further enhance shareholder value by introducing prudent levels of debt to our capital structure."

Pursuant to the repurchase program, shares may be purchased from time-to-time, through open market purchases, pre-arranged trading plans or privately negotiated transactions. The amount and timing of purchases will be based on a variety of factors, including potential share repurchase price, cash requirements, acquisition opportunities, strategic investments and other market and economic factors.

About InterDigital

InterDigital Communications Corporation designs, develops and provides advanced wireless technologies and products that drive voice and data communications. InterDigital is a leading contributor to the global wireless standards and holds a strong portfolio of patented technologies which it licenses to manufacturers of 2G, 2.5G, 3G and 802 products worldwide. Additionally, the company offers converged devices. InterDigital's differentiated technology and product solutions deliver time-to-market, performance and cost benefits. For more information, please visit InterDigital's web site: www.interdigital.com.

This press release contains forward-looking statements regarding our current beliefs and expectations as to: levels of free cash flow in 2007, payments related to current royalties and receipt of either scheduled license fee payments or new pre-payments, our ability to build shareholder value, a fall 2007 product launch, and our plans to reduce our average cost of capital. Forward-looking statements are subject to risks and uncertainties. Actual outcomes could differ materially from those expressed in or anticipated by such forward-looking statements due to a variety of factors including, but not limited to, delays in the receipt of expected payments from our licensees, our ability to enter into new license agreements, the market price of shares of  the company's common stock, other unexpected business demands for cash, acquisitions and other strategic investment opportunities, general market and economic conditions, unexpected delays in our product development program, and the ability to obtain debt on favorable terms. InterDigital is a registered trademark of InterDigital.

InterDigital is a registered trademark of InterDigital Communications Corporation.

SOURCE: InterDigital Communications Corporation

Copyright Business Wire 2006

http://phx.corporate-ir.net/phoenix.zhtml?c=116582&p=irol-newsArticle&ID=945172&highligh...

Posted by: Gamco
In reply to: None
Date:12/29/2006 4:50:08 PM
Post #of 174119

InterDigital bolsters stock buyback plans

By Colin Gibbs

Story posted: December 29, 2006 - 12:59 pm EDT

InterDigital Communications Corp. increased its share repurchase program from $200 million to $350 million. The wireless technology provider said its board voted for the move due to "strong positive cash flow" in 2006 and the anticipation of "high levels of free cash" next year. The company has more than $300 million in net cash and has already bought back 6.4 million shares for $187 million under the current repurchase program.

"In first quarter (of) 2007, in addition to expected payments related to current royalties, we anticipate receipt of either scheduled license fee payments or new pre-payments totaling approximately $120 million from existing patent licensees," CEO William Merritt said. "Our high level of share repurchases in recent years together with this expansion of our current program reflects both our confidence in our ability and our commitment to enhance shareholder value.

In addition, we plan to initiate steps in 2007 to help reduce our weighted average cost of capital and further enhance shareholder value by introducing prudent levels of debt to our capital structure."

Shares of InterDigital climbed 48 cents to $34.42 Thursday following the announcement before settling at $34.18 by mid-day Friday.

PRINTED FROM: http://crstage.us.publicus.com/apps/pbcs.dll/article?AID=/20061229/FREE/61229003/1003/rss01&temp...

Gamco

Posted by: Bill Dalglish
In reply to: JimLur who wrote msg# 173541
Date:12/22/2006 9:54:10 AM
Post #of 174159

Very Positive Update by Boenning/Scattergood on SK news.

Read the whole 7 page NEW report here:
http://wirelessledger.com/IDCC%2012_21_06.pdf

From their new analyst report:

Investment Conclusion: We believe InterDigital is well positioned to grow its recurring royalty revenues by licensing 3G and emerging next generation wireless technologies to mobile handset OEMs. Recurring royalty revenues have grown steadily over the past six quarters and although the timing of future licensing deals and the threat of litigation is a concern, we believe investors should have confidence that these revenue streams will continue to grow.

* This morning SK Telecom announced it has chosen InterDigital Communications to develop a system/software solution designed to support nationwide handover between WiBro and UMTS networks throughout Korea. SK Telecom is in the process of building out WiBro (similar to the U.S.'s WiMax) in several cities and will thus have a need for network interoperability. SK has 20m mobile phone subscribers and offers cutting edge products and services. We believe this is a significant event for InterDigital for two reasons:

* First, InterDigital's patent portfolio has additional monetization opportunities beyond the current 3G efforts which seems to be garnering most of the Street's attention right now. In our opinion convergence is inevitable, as numerous 802.X and other wireless protocols emerge as next generation mobile technologies. InterDigital is firmly positioned with a base of 802.21 patents - technology that supports media independent handover - that will not only provide a critical interoperability role in Korea, but should also be transferable to other geographies as build-outs progress. Other major patent holders of 802.21 standards are Qualcomm and Intel, who will most certainly look to get in on the action.

* Second, we view this event as a major step in successfully building the company's technology solutions business segment. InterDigital has made a concerted effort to not only offer its IP, but to also offer its technology in the form of complete dual mode ASICs. Revenues to date in the company's technology solutions segment have paled in comparison to its royalty revenues, but we believe relationships such as this represent significant segment milestones. Additionally, we believe as the company continues to develop and offer its products and intellectual property to the telecommunications industry InterDigital is slowly gaining more respect and credibility. As the business of patent licensing continues to come under intense scrutiny with the threat of more stringent regulations looming we believe companies, like InterDigital, who continue to develop technology, contribute to the standards bodies, and make technology available to those in need stand to successfully weather the storm.

* We reiterate our Market Outperform rating on shares of IDCC. We continue to remain confident that InterDigital will have success in signing new 3G licensees and that the company's prospects of monetizing its vast IP portfolio are intact. Additionally, we believe the Samsung settlement will be resolved in 2007 in the form of a straight 2G settlement or 2G/3G combination. Our 12 month price target of $39 is base on a sum of the parts analysis which can be found on page 3.

Bill

WL.com: See "4G Best Posts" here on WirelessLedger.com for discussion on the important InterDigital-SK Telecom agreement of Dec. 21,2006.

Posted by: bulldzr
In reply to: mschere who wrote msg# 172924
Date:12/12/2006 10:57:19 AM
Post #172926

Thanks, then I should've said maybe the increased Japanese sales delayed by one quarter will help offset the loss of Nokia revenue. Either way, the revenue shortfall in our 4th quarter may turn out to be a big positive for our 1st quarter '07.

Even though one time windfalls like the Sammy money are a great thing, GREAT thing, I believe even incremental increases and continued growth in recurring revenues will better serve the stock price in the future.

Later and Best, bulldzr

Posted by: mschere
In reply to: bulldzr who wrote msg# 172920
Date:12/12/2006 10:50:42 AM
Post # 172924

S/E 2g sales 4th Quarter 2006 sales will still be reported as recurring revenue in IDCC's 1st Quarter 2007 earnings report.The Samsung 2G money will more than offset Nokia's paid in full 2G revenue.

RE:
You know it may turn out that the sales downturn of the Japanese licensees in their 3rd quarter, which is reflected in IDCC's 4th quarter, will turn out to be a blessing in disguise. The resulting upturn/catch-up in sales for our Japanese licensees in their 4th quarter, will result in increased revenues to IDCC's 1st quarter '07, and could serve to offset some of the expected loss of recurring 2G revenues from Nokia and Ericsson.

mschere

Posted by: Desert dweller
In reply to: None
Date:12/12/2006 8:20:18 AM
Post # 172898

Hilliard Lyons ups rating on IDCC to Long term buy from Neutral according to Charles Scwab account. I can't post a link but I am sure Jim will have the report as he always does.

WL : See Hilliard Lyons analyst report here:

http://www.wirelessledger.com/idccDec2006.pdf

Posted by: my3sons87
In reply to: mschere who wrote msg# 172748
Date:12/8/2006 4:17:05 PM
Post # 172749

Mschere, thanks for the following reminder that we are due to pick up another $95 million from LG in the 1st qtr 2007.

"Under the terms of the patent license agreement, LG is obligated to pay InterDigital three equal installments of $95 million, in the first quarters of 2006, 2007, and 2008, respectively."

Posted by: Danny Detail
In reply to: Data_Rox who wrote msg# 172717
Date:12/8/2006 11:01:15 AM
Post # 172723

DR .. those same people like to pump up the price in coordination,sometimes using misleading information... in anticipation of pulling the manipulation plug.

I should have mentioned that .. good point. The thing is that they use manipulation schemes that would not even occur to the every day investor like the one you indicated and that is what makes them so dangerous.

MO,
Danny

Posted by: Data_Rox
In reply to: Danny Detail who wrote msg# 172710
Date:12/8/2006 10:16:15 AM
Post # 172717

Danny - I agree...but would add that those same people like to pump up the price in coordination, sometimes using misleading information... in anticipation of pulling the manipulation plug. It's not uncommon for them to go both ways....SOME kind of bad guys is right

RE:
That is exactly what I am referring to .. and these are SOME kind of bad guys .. trust me. They will stop at nothing to drive the price down at times. They push the moral, ethical and legal envelopes all the time. Don't be fooled by the short percentage .. it doesn't take many of these guys working together with today's real-time information flow to cause a selling panic. They are VERY good at what they do and much of it is behind the scenes for individual investors.

Stops get taken out en masse and margin calls start flying before some folks know what hit them. I still believe that 10 point drop after PJ's downgrade was one of these instances.

Don't forget that the most one can make on a short position is 100% and the loss exposure is theoretically infinite. Those kinds of odds are bound to lead to far greater manipulation than hyping by longs.

Watch your BS-O-Meters

Posted by: dmiller
In reply to: Danny Detail who wrote msg# 172700
Date:12/8/2006 6:54:35 AM
Post # 172708

Danny...6.9% is not an unusually large number of shorted shares especially when you consider the number of shares that are shorted to hedge their long position.

You obviously missed my point. I never said that shorts don't have an effect on stocks. I was talking about this stock. I held a few other stocks that the short position was only 2% or less and people on the chat boards were still blaming everything on them. Let's face it, most people view the shorts as bad guys and will look for any catalyst to place the blame on them. Let's face it, people look for a reason for their stocks poor performance. It's human nature to want to place the blame on anyone else other than themselves for possibly not seeing the warning signs and staying with a losing company. It's much easier to blame the so called bad guy's. While I almost never short stocks, I don't view them any differently that I view the longs. What I disagree with is the staged misleading efforts of the professionals to hurt a companies share price.

How much do you know about professional shorts and their MO? My guess is not very much or you would not be so cavalier in dismissing their effect on the stock price.

Posted by: dmiller
In reply to: Danny Detail who wrote msg# 172687
Date:12/7/2006 5:00:24 PM
Post # 172689

Danny...I knew what the answer was...lol I guess the point I was trying to make is that the shorts were around @ $8.00 and they'll be around @ $100. The shorts will always be there. Some posters think that these are the same shorts who have been around since the single digits! People who short stocks come and go at different levels just as the people who take a long position.

The short position in this stock has never been very big percentage wise. If you remove the short shares that are used as a hedge, the short position is not much of an event imo. I've seen stocks that have a short interest of 50 to over 100% of the outstanding shares. I never could understand how a position could get to 100% or more??

I guess I just get tired of hearing people bring up the shorts every time the price rises, declines, stays the same, with good news, with bad news, with positive stories and negative stories. I think some people give the shorts a bit too much credit (or not) for everything that happens to a stock.

"1/23/06 Born On Date for IDCC"

RE:

RE: dmiller .. Why are certain people always fixated with the shorts?

I've always assumed it is because of the potential gap up from a short squeeze. Now if the stock keeps having event driven gaps down with high probability the shorts hang in there and the short squeeze gap up on good news doesn't materialize or is at least dampened. What some folks are now seeing I think is that the potential for a widespread short squeeze increases every time we weather one of these negative events. (The last couple I remember prior to this were some insider selling and a NOK delay.)

MO,
Danny

Posted by: The Count
In reply to: Luckyk57 who wrote msg# 172529
Date:12/6/2006 2:51:49 PM
Post # 172584

I love that excerpt - right on the money.

Thanks Jim. This excerpt from the 'RYAN' report is exactly why I am not sweating this bump in the road. No point in bolding anything. It's all good.:

Key Points
• We are lowering our 4Q revenue and EPS estimates for InterDigital to $62 million and $0.32 from $71 million and $0.42 based on the company's new guidance. While dissapointing, we do believe that InterDigital will begin to see sequential growth in recurring revenues in 1Q07 and will also see positive the resolution of outstanding litigation
with Samsung.
• Sell-off possible. If shares are sold on the basis of InterDigital's updated guidance, we believe it will create a solid entry point for investors to buy shares. We remain focused on resolution of litigation with Samsung and new 3G licensee deals as the key catalysts for InterDigital shares in
coming months.
• Product revenue opportunity may get boost from 3G launch in China. Yesterday, Chinese officials commented that the Chinese government could issue 3G licenses in the next two quarters. These officials also indicated that TD-SCDMA, a China-specific 3G protocol, is likely to be launched. InterDigital has a very strong intellectual property position and product position in TD-SCDMA. We view Chinese 3G and TD-SCDMA development as a strong positive for InterDigital.
• We reiterate our Buy rating and price target of $40. Our FY07 EPS estimate includes a large one-time payment, so we build our price target off our estimate for recurring EPS of $1.60 in FY07, which implies a valuation of 25x, a discount to the peer group of 31x.

WL: See Casey Ryan's analyst report here:
http://www.wirelessledger.com/IDCC-20061206.pdf

Posted by: bulldzr
In reply to: jjff who wrote msg# 172120
Date:12/2/2006 6:50:23 PM
Post # 172122

Notice to all prospective buyers of IDCC stock and lurkers in general who read this board.

This is the best stock internet message board on the web imo. You will find many informative posts from honest and qualified investors in this company. The legal and accounting analysis and web search and share capabilities about this company here are unequalled by any other stock message board that I am aware of.

In spite of this, you will also read many, too many posts that leave one with negative feelings and negative opinions of the company and it's prospects for investors; and implications of weakness, lack of IP worthiness, or even management malfeasance. Again, in spite of these negative thoughts you may get from reading many of the posts on this board, I want to say that IDCC is a great investment, imo.

InterDigital is a great company with competent and well engaged management, and the stock has outperformed the market in recent years, and will continue to outperform in the coming years.

Most of the posters here, including the negatories, have realized returns well over 200%... many of us over 500% or more in the last 5 years or so. Personally, over 35% of my family's long term holdings in this stock have a "0" cost basis, another 30% or so has a cost basis in single figures (under $10). I reckon (hope) many, many other longs here are in similar positions.

Some of the negative posters here have an agenda which is opposed to that of a long term IDCC shareholder, others are just overly emotional or immature, many are far too impatient... some are just idiots, in spite of the fact that they are probably way up on their money. Why they don't just sell and relieve themselves of the stress like florida_ggg and others have, and spare the rest of us the pissing and moaning... I don't know?

Please keep this in mind as you read the posts here, and take notice of the following chart.

For extensive info on IDCC please visit:

http://www.wirelessledger.com/

Later and Best, bulldzr

Posted by: j70k
In reply to: None
Date:11/30/2006 4:29:42 PM
Post # 172016

I know that I will catch some flak for this but here it goes anyway.Since institutional ownership is at an all time high,does anyone think that the figures will stay that high or increase if the institutions think that the only way for IDCC to license the big boys is to litigate? I'm sure that they have better use of their money if we are looking at years of litigation.We are now languishing in the 30-35 range with a probable sam payment getting us back over 36.These professional money managers haven't parked their money here for the long haul,nor are they here for a small gain.With delay tactics continuing,qcom/nok coming to a head in April or later,and our price being high enough to command a double that would make the fund managers look like geniuses and of course pass easily by shareholder vote,I believe even more than ever,that we are being set up for a buyout.I don't have any info, but I do believe that this is one major reason the institutions have taken an interest in us.Without this likely possibility,I think you would see a bailout by now.I am even willing to go on record, that we will receive an offer sometime within the next 6 months.GLTA-JMHO.

Posted by: j70k
In reply to: None
Date:11/28/2006 1:40:54 PM
Post # 171873

Does anyone here have any creative ideas as to what(when & why)will cause this stalemate(or stallmate) we are in,to be broken? We are about to enter 2007 and frustration is definitely setting in re:new 3g licenses-particularly the large oems.What is going to be the watershed event to break this logjam and when can we expect it? The endless claims and counter claims within the industry seems to be a stall tactic rather then any substantial event that will define progress going forward.IDCC seems to be caught between a rock and hard place because no major oem wants to be the one to step out and recognize the rightful place we should have in 3g technology.It's as if everone knows a major shoe is going to drop soon that will define 3g licensing, but until it does, no one is in any hurry to make a move.Will we have to wait for qcom and nok to settle their differences or will one or the other make a move concerning IDCC to either define FRAND(nok license)or strengthen their ipr demands(qcom buying IDCC)?The worst case scenario,in my opinion,is having to wait beyond April for this thing to play out between qcom/nok.The time element is becoming crucial to valuing this stock and litigating will only lenghthen the problem.I'm sure all of us thought we would be further ahead at this juncture,and the way I read this is, we are at a sh*t or get off the pot time.If you can't beat em join em

Posted by: JDBJMB
In reply to: None
Date:11/22/2006 7:43:36 AM
Post # 171734

IDCC back on fly, but not a rumor

(Plus, there is a typo on yesterday's closing price.)

InterDigital-IDCC implied volatility at 42; low end of Range indicating less risk

IDCC, a designer, developer and provider of wireless technologies closed at $31.86. IDCC has outstanding patent litigation issues with Samsung. IDCC has customer licensing agreements with LG, NEC, Sharp, Panasonic, NOK & Sony-Ericsson. IDCC over all option implied volatility of 42 is below its 26-week average of 47 according to Track Data, suggesting decreasing price risks. :theflyonthewall

Posted by: my3sons87
In reply to: sinnet14 who wrote msg# 171732
Date:11/22/2006 8:43:23 AM
Post # 171735

Sinnet, IDCC has over a 55% return on assets. That is the highest on that 13 stocks list. It is also great to get additional free publicity.

Posted by: sinnet14
In reply to: golferwalt who wrote msg# 171731
Date:11/22/2006 1:15:34 AM
Post # 171734

13 stocks for the year-end rally (including InterDigital)
Link for full text:
http://articles.moneycentral.msn.com/Investing/FindHotStocks/13StocksForTheYearEndRally.aspx

sinnet

RE:(post dmiller # 171733)
While it's great to see IDCC getting more and more exposure, I'd take this list with a grain of salt. Some of the stocks that made it through his screening are pure crap with severely deteriorating underlying fundamentals. Take Zip Realty (ZIPR) for example.

Posted by: Danny Detail
In reply to: j70k who wrote msg# 171380
Date:11/15/2006 12:39:56 PM
Post # 171393

j70k .. The question I have is,what happens when multiple institutional owners want to get out at the same time?

It all depends on the reason for getting out. If it has to do with portfolio rebalancing there is likely to be little or no effect since there will typically be multiple institutions who need to rebalance at the same time by adding shares of IDCC. Happens every day in the market with lots of stocks with little impact on the stock prices.

On the other hand if it is because of a significant change in the fundamentals driving the upside, most of the institutions will be trying to get out at the same time and the stock will take a big hit and any here who are still long will get hurt and quickly. IMO, that day is several years off. Just keep watching what the analysts have to say .. and there will be lot more of them by this time next year .. for any clue that the bloom is beginning to come off the rose as far as the institutions are concerned. Fortunately, Jim has been able to secure reasonably timely access to the analysts' reports. Not sure he will be able to do so when the major firms initiate coverage but then I didn't think he could get anywhere near the access he has to date.

Regards,
Danny

Posted by: j70k
In reply to: None
Date:11/15/2006 11:51:20 AM
Post # 171384

You guys are missing the point:Any time anyone takes a major position in a stock, an exit strategy has to be in place, and is exacerbated when supply is low. On the positive side, I think that was one of the major stumbling blocks to past institutional ownership increasing-how do we get out, if things don't pan out as expected? Our notoriety has increased substantially, but something else has changed regarding the perception of our company, and the risk/reward factor seems to be tilted in our favor.I may be totally wrong,but it seems that more professional buyers are seeing a limited downside risk, and I think it is because they know that at a worst case scenario,the patent portfolio is a valuable commodity to any number of buyers out there in wireless.Saying it will or won't happen, won't make it so,but a perception that someone may be interested in acquiring a company helps stabalize the downside risk, while allowing for a major run up.Again, just some musing on my part,and I don't have any info to back it up,but it does feel different this time.

Posted by: sailfreeee
In reply to: j70k who wrote msg# 171380
Date:11/15/2006 11:19:30 AM
Post # 171382

You said "The question I have is,what happens when multiple institutional owners want to get out at the same time?"

How about the opposite---"The question I have is,what happens when multiple institutional owners want to get IN at the same time--see link below he he

BTW people/institutions buying at this level and below expect it to go higher, so I think my question is more appropriate, but then again jmho

RE:
Institutional ownership-The question I have is,what happens when multiple institutional owners want to get out at the same time? An overload on the sell side could devastate the price,with recovery time being very long,especially if some sort of negative news precipitated the sell.Does anyone have any thoughts or can point to other examples of companies with a small number of shares available that has majority ownership by institutions? Then again,maybe the institutional owners never plan to sell or know they never will have to sell, because their conclusion is that the company will be bought out.Just another perspective-so don't go crazy saying it won't happen.

Posted by: Danny Detail
In reply to: Learning2vest who wrote msg# 171370
Date:11/15/2006 9:25:05 AM
Post # 171372

L2V .. Is it reasonable to assume that the big institutional investment houses would get an expert opinion on open legal issues before taking a significant position in a firm like IDCC?

Not only is it reasonable, it is highly likely. The same is true for the brokerage firms that employ the sell-side analysts. $5-10 thousand is insignificant in terms of the money allocated for investment research both on the buy-side and the sell-side. These are HUGE bets being made here and the money management business is one of the most competitive and transparent businesses going. Huge amounts of money can be moved from an underperforming institution in the blink of an eye since there is no barrier to doing so. The same is true in terms of the revenues the brokerage firms receive from the institutions that utilize their research in their investment decision making processes. Institutions and their clients vote with their feet across the board. The cost of being wrong would dwarf the money spent getting a legal opinion.

Regards,
Danny

Posted by: bulldzr
In reply to: boxsterS who wrote msg# 171331
Date:11/14/2006 6:23:18 PM
Post # 171350

Yep, that is the "News" of the day... institutional ownership grows beyond 50%. That is quite a milestone for our little Company don't you think? Here is Jimlur's link to Inst ownership:

http://www.nasdaq.com/asp/holdings.asp?mode=&kind=&timeframe=&intraday=&charttype=&a...

Well Lurgio... the answer to your old question of "genious's or idiots" is getting more clear every day buddy. Either way, we will have some big boys as company! Drinkin' that Kool-aid right along with us, LOL!

RE:
inst owners up to 51 goldman picks up 2.4 mil shares

Later and Best, bulldzr

Posted by: Danny Detail
In reply to: lotoworld who wrote msg# 171327
Date:11/14/2006 5:06:31 PM
Post # 171335

lotoworld .. Ya gotta love it:

http://www.investorshub.com/boards/read_msg.asp?message_id=14656551

There is good news and bad news to institutional ownership. The good news is when a stock is under institutional accumulation which IDCC clearly is. IMO we are a long way from when we have to worry that the institutions perceive a limited upside and move their collective fingers from the buy/hold trigger over to resting on the sell one .. that is when we individual investors are in danger of experiencing the bad news in spades. My guess is that the DD on this board will show us the need to use the exit door well before we get trampled by a stampede of institutional selling.

Regards,
Danny

Posted by: sonic22
In reply to: wireless_wazoo who wrote msg# 171311
Date:11/14/2006 11:37:12 AM
Post # 171312

Wireless,

I think we'll get one within the next few months. IDCC is looking at a 12.5 million revenue delcine starting 1/1/06 and another 6-8 million decline starting 4/1/06. Something will break one way or the other soon. Either they initiate a lawsuit or they get a few signed but I really believe by the end of 1st Qtr 07 something good or bad will happen.

RE:
Volume for the market and IDCC has been waning recently. Both need a positive catalyst for more gains.

Posted by: Data_Rox
In reply to: None
Date:11/11/2006 7:55:35 AM
Post # 171204

INTERDIGITAL COMMUNICATIONS - PRES & CEO INTERVIEW

CEOWire
November 10, 2006
Erin Burnett

ERIN BURNETT, CNBC ANCHOR: Now fresh off the opening bell at the Nasda , we are joined by the CEO of InterDigital Communications. It is a digital telecom company you probably haven`t heard of, but their software is in some of your favorite portable devices from NEC (NIPNY), Sharp, and Sony-Ericsson. And the stock has been big winner this year, up more than 75 percent. CEO Bill Merritt joins us now.

Mr. Merritt, a pleasure to have you with us.

WILLIAM MERRITT, PRES. & CEO, INTERDIGITAL COMMUNICATIONS: It is great to be here.

BURNETT: What is the number one driver of sales for you this year?

MERRITT: Well, I think the thing that is really driving this stock for us this year is obviously good cash performance, cash flow performance, and I think also the fact that people see this not only as a sort of one-time event for the company, this is the type of year they expect us to have come -- going forward.

BURNETT: So what you are saying is you expect all the spending the telecom companies and wireless companies are doing right now to continue at the same pace?

MERRITT: Well, Certainly the -- you know, the mobile telephone device market is doing very well. They are going to go over a billion phones this year. And we are positioned to capture a piece of every phone that is sold over time. So I think it is a great market for us and we are in a great position.

BURNETT: Every phone that is sold?

MERRITT: Because of our patent position, we have the ability to secure revenue on every phone sold today. We get about -- revenue on about 40 percent of the phones that are sold, and we are building that every year. So again, it is a great consumer market and we are in a great spot.

BURNETT: Some of the phone-makers have been out lately though saying that phone sales are not growing as quickly as they thought it might be. Are you seeing that slow down?

MERRITT: Actually I think that the -- you know, the projections this year are to get over a billion for the first time, so I think the market is doing very well. And the mix of phones is good. I think the 3G market, which is important for us, is picking up very well in addition to the overall phone market. So things look pretty good.

BURNETT: But -- so no slowdown in growth rate of cell phone sales?

MERRITT: I don`t see any slowdown this year, and certainly the growth of 3G looks very good, and that is important for us.

BURNETT: All right. Mr. Merritt, thanks so much for joining us.

MERRITT: I appreciate it. Thank you.

BURNETT: Bill Merritt is the CEO of InterDigital Communications.

Posted by: rooster
In reply to: None
Date:11/10/2006 8:19:07 AM
Post # 171149

Telecommunications Innovator InterDigital Communications Corporation Celebrates 25th Anniversary as a Public Company

KING OF PRUSSIA, Pa., Nov 10, 2006 (BUSINESS WIRE) --

In celebration of its 25th anniversary as a public company, InterDigital Communications Corporation (NASDAQ:IDCC) Chief Executive Officer, William J. Merritt, will ring the NASDAQ Opening Bell today, Friday, November 10. The Opening Bell ceremony will take place at 9:30 a.m. EST at the NASDAQ market site in Times Square, New York. (see left for bellringing pic)

Since its inception, InterDigital has focused on building digital wireless technologies and patenting its intellectual property for the global wireless industry. Over the years, InterDigital has generated over $1 billion from its patent licensing program. InterDigital has license agreements in place with many of the popular handset brands including Nokia, Samsung, LG, NEC, Panasonic, Sharp, and Blackberry.

"Today's celebration culminates decades of focus and innovation that has made us a critical part of the underlying architecture of modern wireless products and applications. In fact, our inventions are used in every digital cellular phone around the world," remarked Mr. Merritt. "This year also marks the beginning of an exciting chapter for the company as we continue to bring our innovations to the industry."

Over the past 25 years, InterDigital's stock price has risen from its $3 IPO price to over $30 per share today, growing its market capitalization from $18 million to over $1.5 billion. Additionally over that time, the company has produced significant financial growth beyond its entrepreneurial start. For first nine months of 2006, InterDigital reported revenue of approximately $415 million and net income of approximately $200 million and built the company's cash and short-term investment portfolio to approximately $300 million at the end of third quarter 2006.

30 Years of Innovation

Since its founding in 1972, InterDigital has pioneered the digital wireless frontier, innovating the design, development and delivery of advanced wireless technology platforms that enable high data rates and voice transmissions in a wireless environment. Building on this heritage of invention and work with many of the leaders in the telecommunications industry, the company has built an intellectual property portfolio of more than 7,500 issued patents and patents pending around the world. The company also continues its active participation in global standards bodies that shape the evolution of the technology and the future of the industry.

In earlier years, InterDigital was at the forefront of the industry by recognizing the limitations of analog cellular technology and designing and demonstrating digital cellular systems that utilized Time Division Multiple Access (TDMA) technology, years before others. These developments lead to the basic design concepts and methodologies by which commercial TDMA-based wireless systems are implemented worldwide.

Subsequently, InterDigital escalated the development of broadband Code Division Multiple Access (CDMA) technologies and established an international consortium with industry leaders to deploy these systems for fixed wideband wireless local loop. These fundamental technologies are now the foundation for WCDMA used in the latest systems known as 3G, or the third generation.

The company employs approximately 340 employees (primarily in engineering and research and development) in two locations in the U.S. and in Canada.

Posted by: JimLur
In reply to: revlis who wrote msg# 170463
Date:11/2/2006 9:52:39 AM
Post # 170640

To all, Here's the transcript of yesterdays CC.

http://wirelessledger.com/IDCC-Transcript%203Q-2006%2011-01-06.doc

Posted by: Learning2vest
In reply to: None
Date:11/2/2006 9:51:16 AM
Post # 170638

The deal dance. This old retired peddler negotiated a lot of sales transactions in years past, and most of them involved doing what I call the "deal dance" before they were done.

The music begins right after both parties have made their "final" offers to each other. Most of the time there was a sizable difference between what I could accept and what had been offered. It was tap dance time for me as the potential customer yanked my chain with threats of going with one of more of my competitors, delaying the decision, or whatever else he could think of to get my offer to look more like his.

Reason for mentioning that is what we are seeing go on between IDCC and at least two of the reluctant wireless manufacturers right now. IMO IDCC is doing the deal dance with both Nokia and Samsung. I think IDCC has exchanged "final" offers with both parties and that we are watching them do their versions of the "come my way" shuffle.

What I'm saying is that IMO both Nokia and Samsung know exactly what IDCC is willing to accept and that IDCC has offers on the table from both Nokia and Samsung(and from some others as well). I think they are dancing over the difference and that on the cc yesterday we heard Bill Merritt telling ALL of the unlicensed manufacturers that he is not coming any closer.

He told us to be prepared to wait as long as it takes to get the "right" deal, and then in his next breath he told Samsung that he was going to rip their jewels off in a few months. Uncle Billy is a strong "stepper" if you catch my drift. I like it!

Posted by: Learning2vest
In reply to: None
Date:11/1/2006 10:20:56 PM
Post # 170606

It's not gonna play well with some, but that has never bothered this old mule before.

Liked, and was not surprised by, what was said on the cc this morning. ASIC products will give leverage to patent licensing if they are good, and I'm betting that our propeller heads at IDCC will deliver ASIC products that are better than good. I think the move from offering to license the firm's patented tech to delivering fully enabling components is brilliant. It leverages partners to create a much bigger threat to manufacturers who dare to tread on your patent rights.

When/if IDCC is "the firm to see" for hot chips that kick ass in the commercial market(why else would they even try?), the game will change. THIS interested observer likes that strategy one HELL of a lot better than watching IDCC pay a bunch of lawyers obscene rates to piss in each other's boots for another decade of litigation.

Put this scenario up on the wall just for fun-

It's 2008 and IDCC has a line of fully integrated baseband modem ASIC components that are the hottest things going for 3G standards compliant operations,... AND,.. they are multi-mode capable with WLAN/WiMax(Yowser!). In addition, IDCC has the engineering services resources to make those products work with just about anybody's application design.

The manufacturing contractors who build hot selling wireless devices for everybody are standing at the ready in Tiawan when somebody like a Steve Jobs at Apple decides to create "the next great wireless thing" with an IDCC engine and transmission. Millions of those next generation wireless IPOD things start selling and other wireless manufacturers have to respond with something that performs as well.

Where does THAT kind of scenario put the IDCC vs Nokia relationship? HUH??? I'm thinking it put's it in a better place than some sleepy slick's courtroom is where.

Posted by: revlis
In reply to: loophole73 who wrote msg# 170424
Date:11/1/2006 7:10:27 PM
Post # 170584

loophole,

These are what IDCC have or will have to offer to their customers:

1. 3G protocol stack
2. dual mode 2G/3G protocol stack
3. dual mode 2G/3G protocol stack with APOXI
4. dual mode 2G/3G protoco; stack with Infineon platform
5. ASIC

4 and 5 could be the same.

mo

Posted by: Danny Detail
In reply to: e5oo who wrote msg# 170539
Date:11/1/2006 5:32:12 PM
Post # 170569

e500 .. My question. Who gets it?

We ALL do, including even you, dmiller and AMS. Those who have bought and continue to hold while never selling believe that IDCC has significant intellectual property at a time when the commercial value of knowledge is growing at an incredibly rapid pace in the Global Economy. The "Knowledge Revolution" will have as many ups and downs as the Industrial Revolution did but it will be firmly entrenched during the next decade IMO. IDCC will be the biggest winner I have ever had and I've had some very good ones. I have no desire to take any risk .. no matter how small .. of endangering that possibility by trying to improve through trading and options what will be astronomical returns in ten years on a miniscule investment. I can't foresee a time when I will need or want to sell any or all my shares. Instead I'll be sitting next to Rookie (hopefully many years from now) looking down with a big smile on my face when my four kids show up in my attorney's office and find that along with everything else dear old Dad was able to leave them they will have hit the lottery with my 1999 investment in IDCC.

I assume that you, dmiller and AMS believe that you can maximize your long run returns by trading. More power to you IF you can. Different strokes for different folks. However, I have learned to have a very skeptical attitude about the fish stories of traders and option players. At least the performance of a strict buy and hold investor like myself is totally transparent and verifiable. I don't run and hide when the stock price goes counter to my opinions and then make another cameo appearance when it appears I am right. Why you folks appear to get high on doing that is beyond me. I couldn't care less what those who are thinking only of their next trade think of IDCC's long-term future. I listen to the opinions .. pro and con .. of those who are thinking about where IDCC might be ten years from now and I do that because I am fortunately financially able to do so. It has been a great ride so far and it is only going to get better even with the occasional bumps in the road.

Danny

Posted by: dndodd
In reply to: None
Date:11/1/2006 4:37:26 PM
Post # 170547

InterDigital earnings triple in 3Q

Philadelphia Business Journal - 9:55 AM EST Wednesday
InterDigital Communications Corp.'s third-quarter income more than tripled, the company reported Wednesday.

InterDigital (NASDAQ:IDCC) earned $21.7 million, or 40 cents per fully diluted share, up from $6.5 million, or 11 cents per fully diluted share in the third quarter of last year.

The King of Prussia, Pa., developer of wireless-communications technology said its most recent third-quarter figure includes $8.1 million, or 15 cents per fully diluted share, related to the resolution of its patent dispute with Nokia Corp. Nokia agreed in April to pay $253 million to settle the dispute. InterDigital attributed InterDigital attributed $154.1 million of its second-quarter income to that settlement plus a settlement with Panasonic Mobile Communications Co.

InterDigital's revenue rose 38 percent to $67.2 million from $48.5 million in the third quarter of 2005.

Posted by: sonic22
In reply to: chartex who wrote msg# 170537
Date:11/1/2006 4:17:33 PM
Post # 170540

Chartex agree with you on BM tone and they still seem confident. However the 12.5 million NOK revenue ends on 12/31/06, this revenue is not on the quarter lag like the other licensees. So everything being equal as it was today, were looking t 56.5 million revenue for 1st Q, we don't get any licensees by 2nd Q 06 and we'll be close to break even again with the additional drop off. I have to believe that IDCC and WM know this, and i'm sure they have Financial analysts there that can see the same thing as we do. Maybe i've been in IDCC so long but from where i stand I think were in a very short term game right now. We only have 2 months till the end of the year and than its 2007 and our revenue will start to drop unless we get things done. As I said before something will break one way very soon either a blockbuster deal with a major or we initiate court date, I think one of the 2 happens by the end of the 1st Q 2007. IDCC can't afford(I know financially we can but from a licensing standpoint we can't) to go into 2007 without something happening withing the first half of the year, the dropoff in revenue will be a major blow to IDCC in 2007 if nothing happens. All my opinion of course and believe me I want nothing more than for IDCC to suceed but the time has come and within the next 6 months I think we'll know where we stand.

Posted by: ellismd
In reply to: spree99 who wrote msg# 170524
Date:11/1/2006 3:34:22 PM
Post # 170530

I'll try. The way ahead is not so clear. The expectations for a new licensee is starting to damper. The Samsung dollars are expected and accounted for by the WS gurus, but there is a need for a steady and predictable big infusion of cash to replace the lost of revenue in Q2 07 as well as a need to grow revenue beyond the replacement to justify share price. The big 4: Nok, Sam, Mot, and Eric are needed for IDCC to make any sustain price movement. Licensing smaller company's will give shareprice a momentary pop and more stability at current levels. The IPR Wars still have more room to play out before any clarity is provided and all the above is the reason for the price dump. There are probably more reasons that clouds IDCC's future but I think those are the main ones. It is not doom and gloom but reality. When the dust settles, and I'm not sure when that is IDCC should be o.k., but the truth is litigation and the loopholes in the system makes it hard to predict.

RE:
im or anyone can you give me a quick summary as to why we are down 5 bucks. I just skimmed the earnings and don't see anything there, might have missed something. Is this just a reaction to yesterday's news combined with no new deals? Thanks

Post your Stock Tips and Rumors about IDCC here
http://www.investorshub.com/boards/board.asp?board_id=6241

Posted by: loophole73
In reply to: revlis who wrote msg# 170408
Date:11/1/2006 10:01:53 AM
Post # 170424

rev

I am not overly excited about attempting to wade into the chip business for the following reasons:

1. potential cross-licensing problems

2. committed costs without a customer base.

3. We have seen what the companies will do to avoid a license and a wink and nod boycott would not surprise me or IDCC.

Whatever chip they are contemplating had better be "you just have to have it" with respect to performance and cost in the wireless sector before a final "go forward" is set in stone.

MO
loop

Posted by: lastchoice
In reply to: None
Date:11/1/2006 9:24:31 AM
Post # 170395

InterDigital Announces Third Quarter 2006 Financial Results

KING OF PRUSSIA, Pa.--(Business Wire)--InterDigital Communications Corporation (NASDAQ:IDCC), today announced results for the third quarter and nine months ended September 30, 2006. Highlights for the third quarter include:

-- Revenue of $67.2 million

-- Net income of $21.7 million, or $0.40 per diluted share

-- $134 million (plus interest and additional royalties) arbitration award related to a patent license dispute with
Samsung

-- Cash and short-term investments totaling $304.2 million

-- Repurchase of 1.8 million shares of the company's common stock

"These successes have allowed us to continue to build shareholder value," commented William J. Merritt, President and Chief Executive Officer. "Our track record of producing solid earnings and positive cash flow demonstrates the continuing maturation of our 3G technology business. Furthermore, the strength of our patent licensing program was confirmed by the receipt of a substantial arbitration award related to our patent dispute with Samsung."

Mr. Merritt added, "We also made positive strides in our dual-mode 2G/3G ASIC programs as we completed the agreement to license Infineon's 2G Layer 1 technology. We are on target to receive ASIC samples from the foundry in summer 2007. Based on successful interoperability testing with major infrastructure vendors, we believe our dual-mode 2G/3G HSDPA/HSUPA modem offering will be highly competitive. Accordingly, in parallel with the development effort, we
have been reaching out to terminal unit vendors to begin a sales dialogue around the InterDigital solution."

The company has recently been recognized by two industry organizations for its achievements in licensing and intellectual
property management. InterDigital was named a 2006 recipient of the Licensing Achievement Award from the Licensing Executives Society, joining the ranks of prior winners such as Pfizer and StanfordUniversity. Additionally, InterDigital was included as an inaugural member of the Ocean Tomo 300(TM) Patent Index, announced by Ocean Tomo
and the American Stock Exchange on October 24, 2006. The index is based on the value of intellectual property and represents a diversified portfolio of companies that own the most valuable patents relative to their book value, including companies such as 3M and IBM.

Third Quarter Summary

The company's net income increased to $21.7 million, or $0.40 per diluted share, in third quarter of 2006 from $6.5 million, or $0.11 per diluted share in third quarter of 2005. Included in this quarter's net income is approximately $8.1 million after tax, or $0.15 per diluted share, related to the resolution of patent licensing matters with Nokia.

During third quarter 2006, the company generated $5.8 million of free cash flow(1) due largely to the receipt of $14.8 million of royalty prepayments primarily from two existing patent licensees, offset, in part, by investments in product and patent related initiatives.

Revenue in third quarter 2006 increased to $67.2 million from $48.5 million in third quarter of 2005. Third quarter 2006 revenue included $54.7 million of recurring patent license royalties and technology solution sales, and $12.5 million related to Nokia. Recurring patent license royalties in third quarter 2006 increased 58 percent to $53.5 million from $33.8 million in third quarter 2005, due largely to a new agreement signed subsequent to third quarter 2005 with LG Electronics Inc. (LG) and new or higher contributions from other existing licensees. Technology solution revenue decreased to
$1.2 million in third quarter 2006 from $4.5 million in third quarter 2005 due to the completion in first quarter 2006 of deliverables under an agreement with General Dynamics supporting a program for the U.S. military. Licensees that accounted for 10 percent or more of the $54.7 million of recurring patent license royalties and technology solution
sales were LG (27 percent), NEC Corporation of Japan (17 percent) and Sharp Corporation of Japan (17 percent).

Third quarter 2006 operating expenses of $36.8 million decreased 4 percent compared to third quarter 2005. This decrease primarily resulted from lower costs in three areas. Patent litigation and arbitration costs declined to $5.2 million in third quarter 2006 from $7.9 million in third quarter 2005 due to a decrease in activity levels in third quarter 2006. The company's long-term compensation costs decreased $1.2 million, reflecting the absence of overlapping cycles. In addition, the company recognized $0.8 million of repositioning charges in third quarter 2005. These decreases were offset, in part, by increases in third quarter 2006 costs related to product development initiatives, patent amortization and depreciation,
and consultant compensation.

Net interest and investment income of $4.1 million in third quarter 2006 increased $3.3 million over third quarter 2005 due to
both higher investment balances and higher rates of return in third quarter 2006.

The company's third quarter 2006 tax expense consisted of a 36 percent provision for federal income taxes plus $0.4 million related to the amortization of foreign deferred tax assets related to non-U.S. withholding taxes made in prior years. Third quarter 2005 tax expense of $4.4 million included a federal tax provision of $4.0 million and $0.4 million related to non-U.S. withholding taxes.

Nine Months Summary

Net income for first nine months 2006 increased to $205.0 million,or $3.65 per diluted share, from $9.7 million, or $0.17 per diluted share, in first nine months 2005. Approximately $162.2 million or $2.83 per diluted share of the 2006 net income is related to the resolution of patent licensing matters with Nokia and Panasonic.

For first nine months 2006, revenue increased to $415.4 million from $122.6 million in first nine months 2005. This increase was driven by $240.5 million and $12.0 million related to the resolution of matters with Nokia and Panasonic, respectively, a new agreement signed following third quarter 2005 with LG and higher contributions from other existing patent licensees.

During first nine months 2006, the company generated $294.6 million of free cash flow. This free cash flow was driven, in large part, by patent license payments from Nokia and LG totaling $319.7 million, net of source withholding taxes, offset, in part, by estimated federal tax payments and investments in product and patent related initiatives.

Operating expenses for first nine months 2006 of $105.6 million decreased 1 percent compared to the first nine months 2005. This decrease is related to lower costs associated with patent litigation and arbitration, long-term compensation, executive severance and repositioning activities offset, in part, by higher costs associated with commissions, product development initiatives and patent amortization.

Net interest and investment income of $9.5 million in first nine months 2006 increased $7.3 million over first nine months 2005 due to both higher investment balances and higher rates of return in first nine months 2006.

The company's first nine months 2006 tax expense consisted of a 35 percent provision for federal income taxes plus $2.2 million of non-U.S. withholding taxes. First nine months 2005 tax expense of $8.1 million included non-cash charges for both federal income taxes and non-U.S. withholding taxes of $5.9 million and $2.2 million,
  espectively.

Fourth Quarter 2006

Consistent with the company's practice, revenue guidance for fourth quarter 2006 will be provided following the receipt and review of applicable royalty reports. The company will also update its forecasts on anticipated revenue from work associated with technology solution agreements.

Rich Fagan, Chief Financial Officer commented, "We currently anticipate that fourth quarter 2006 operating expenses, excluding patent arbitration or litigation costs, will grow by 7 percent to 12 percent sequentially compared to third quarter 2006, principally reflecting investments in outside services associated with meeting our schedule to have engineering samples of our 2G/3G ASIC by summer 2007. We also currently expect that our patent arbitration and litigation costs in fourth quarter 2006 will be between $5 million and $7 million as we continue to invest whatever is necessary for this critical
activity. Lastly, we expect that our book tax rate for the fourth quarter of 2006 will approximate 35 percent to 37 percent."

Posted by: sjratty
In reply to: sailfreeee who wrote msg# 170379
Date: 11/1/2006 8:44:53 AM
Post # 170380

Litigation is a difficult to assess, particularly when it is filed almost entirely under seal. Further, even in the best of circumstances and with good facts, the party that should win does not. Thus, the appreciation in the share price, combined with the uncertainty of litigation, warranted me to take at least some off the table. That said, I still own shares because if we are successful in these litigations, I think there is still substantial upside ahead. Everyone has their own risk tolerance, and should proceed according to that.

RE:
In your opinion, what has changed, other than the stock price, that causes you to change your opinion?

"Now, I think that analysis has somewhat changed. This is not to say that IDCC can't move up significantly, but there is a lot more downside risk then their once was."

Posted by: sjratty
In reply to: None
Date:11/1/2006 8:29:54 AM
Post # 170377

One thing that has changed recently in the risk analysis is the price. Specifically, I was a long time believer that the possible appreciation well outweighed the risk of a significant fall. For example, when the stock was $18, it was easy to see that there was a much better chance of going up, then significantly going down. Now, I think that analysis has somewhat changed. This is not to say that IDCC can't move up significantly, but there is a lot more downside risk then their once was. I am not advocating selling, or saying that IDCC is a bad investment, just noting one difference in the analysis in deciding whether to buy, sell or hold.

Posted by: Dishfan
In reply to: mschere who wrote msg# 170118
Date:10/27/2006 5:43:17 PM
Post # 170120

mschere, thanks for the update. I am most impressed by our new holder, Mazama Capital Management. Barclay's and Vanguard are mostly indexers; but Mazama is a true fundamental investor who apparently has taken a closeup look at InterDig and likes what they see (to the incredible extent of 2 million new shares).

At the heart of Mazama's investment philosophy is the belief that exceptional investment returns can be achieved by investing in a diversified portfolio of quality companies that have made recent investments in people, products, plant and/or services and are now positioned to outperform expectations. Buying these quality, timely companies at a good valuation relative to their expected ROE and EPS growth rates enhances the opportunity for attractive gains and minimizes risk of downside price movements.
Our fundamental, bottom-up approach to security selection includes detailed analysis of financials, discussions with company executives & employees, and timely visits to evaluate company operations. We compare notes between vendors, suppliers and competitors to properly determine a company's competency and rankings in their sector.

Our philosophy takes advantage of the market inefficiencies that exist within the small and mid cap universe. These inefficiencies include the fact that very few people have comprehensive, accurate information on these smaller companies. We have the ability to capitalize on that lack of broadly known information, because of the rigorous, fundamental research we do to uncover that information.

RE:

Owner Name
Select a name below for more information. Date Shares Held Change
(Shares) % Change
(Shares) Value
($1000)
HEARTLAND ADVISORS I... 6/30/2006 3,779,000 (275,350) (6.79%) $139,332

BARCLAYS GLOBAL INVE... 6/30/2006 2,073,602 (174,252) (7.75%) $76,454

MAZAMA CAPITAL MANAG... 6/30/2006 1,988,283 1,988,283 New $73,308

VANGUARD GROUP INC 9/30/2006 1,679,804 527,675 45.80% $61,934

STATE STREET CORP 6/30/2006 923,733 696 0.08% $34,058

abridged post

Posted by: my3sons87
In reply to: None
Date:9/13/2006 1:39:36 PM
Post #of 167737

This will happen again on Wall street.

January 24, 2000
InterDigital Communications Corp.

Price (1/21/2000): $37

By Paul Larson (TMF Parlay)

How Did It Double?

Every once in a while, a stock comes along and acts so wild that we can't help but take a closer look. Such is the case with InterDigital Communications, a company taking advantage of the wireless craze. Between early 1997 and November 1999, InterDigital's stock was fairly tame and generally fetched between $4 and $8 per share with little volatility and moderate trading volume. But that all changed on November 17 when Wall Street's most recognizable name in the wireless industry, Qualcomm (Nasdaq: QCOM), filed its annual 10-K report with the SEC.

In that report, Qualcomm disclosed that it had licensed patents from InterDigital essential to its own code division multiple access (CDMA) technology. One of the reasons Qualcomm has been one of the hottest stocks over the past several months is because it is largely seen as the one holding the purse strings to the patents concerning CDMA, and CDMA is a vital technology and digital standard in today's wireless industry. In other words, Wall Street woke up to the fact that Qualcomm is not the only wireless company that has the potential to receive high-margin royalty income from its wireless patents.

With this realization, the volatility in InterDigital's stock has gone through the roof. On November 17, InterDigital was trading at $5 7/16 and typical trading volume on the stock was approximately 200,000 shares per day. The next six weeks after the patent licensing news saw the stock skyrocket on impressive volume. On December 30, a mere 6 weeks after Qualcomm's disclosure, InterDigital's stock went as high as $82 with 12.6 million shares trading hands in a single day.

While InterDigital is down significantly from those blow-off highs made near New Year's, those who have held the stock more than two months have seen their shares double in value several times over.

Business Description

InterDigital Communications can be best described as a wireless research company. The company develops digital wireless telecommunications technology and systems for voice, data, and high-speed multimedia access. While the company does make mobile phones and related equipment, it is a small and withering part of the business. The lion's share of InterDigital's revenues comes from technology development, transfer, and licensing, as well as related engineering services. In the most recent quarter, revenue from licensing and strategic partnerships accounted for more than 95% of InterDigital's sales.

InterDigital is currently working with Texas Instruments (NYSE: TXN) to complete an advanced chip utilizing its Broadband Code Division Multiple Access (B-CDMA) technology for use in wireless applications. InterDigital also has an alliance with Nokia (NYSE: NOK) to develop advanced wireless Internet access technology.

How Could You Have Found This Double?

InterDigital has been around for a long time and had patents on various wireless technologies years before Qualcomm and today's wireless titans became all the rage on Wall Street. People who got excited about Qualcomm's prospects for achieving significant royalty income on its wireless patents probably would have done themselves a favor to look around at some of the other companies in the industry with similar technologies and business models.

Where to From Here?

While InterDigital has been public for a long time (the company was founded in 1972 and came public in 1982), it has a shoddy record of creating shareholder value. This can be seen when looking at the company's balance sheet, where InterDigital's accumulated deficit, which is essentially the sum total of the company's losses over the years, stands at a tall $134.9 million. Plus, the company only had three profitable years in the 1990s (1994, 1998 and, when the books are closed, most likely 1999). While the issues now facing InterDigital are slightly different from what it has faced in the past, the spotty historical profitability should give pause for thought.

It should especially give pause since the company's business model remains relatively unchanged. The company has been researching and developing wireless patents for years in the hopes of licensing those patents and sitting back and collecting the easy money of royalties. It's a model that can work and can bring phenomenal high-margin returns, as Qualcomm has recently shown. However, attaining and keeping the proper patents is no easy task, especially with today's litigious atmosphere and so many other companies working on the same or similar technologies.

The exact strength of InterDigital's patent portfolio remains an open question. The Qualcomm news is certainly a positive indication that some of InterDigital's patents related to CDMA have at least some validity. The terms of Qualcomm's agreement with InterDigital have yet to be fully disclosed, which is no small factor in InterDigital's wild volatility of late. It is still a mystery whether the royalty stream from Qualcomm will come rushing in like a river or be only a trickle.

Looking beyond the CDMA standard, InterDigital has also chosen some potent friends to develop next-generation wireless technologies. The company has partnered with Texas Instruments to build its wireless chips, and TI is an extremely strong semiconductor company. Plus, InterDigital's relationship with Nokia gives InterDigital a partnership with one of the largest and most dominant makers of wireless products. In other words, InterDigital looks to have as good a shot as any at cornering the patents on the so-called 3G standard.

However, the wireless field is crowded, and betting on the outcomes of legal and standards battles is always a crapshoot.

So, what does all this mean for current and potential InterDigital investors? About the only certain thing about InterDigital at this point is that it has a highly uncertain future, both in the short and long term. The company could very well be "the next Qualcomm," or it could end up where it was in the past -- with plenty of red ink and disappointments. Either way, InterDigital is a company worth keeping on the radar and investigating further.

Is InterDigital the Next Qualcomm?

By TIERNAN RAY

September 7, 2006

IT'S NOT EVERY DAY that one finds a company with astute management, good products and an absolutely fantastic market.

Case in point: InterDigital Communications, a $1.61 billion market-cap company that licenses its patents to cellphone makers for the design of chips that power the phones.

Bulls think InterDigital could be another Qualcomm, a Wall Street darling of the 1990s which made $2 billion last year in royalties from Nokia, the top handset maker, and other vendors.

But shares of InterDigital are richly valued, having risen 75% this year. And an ongoing licensing battle between Nokia and Qualcomm has cast a cloud over InterDigital's business.

Shareholders are almost certain to take some profits and the stock could fall quite a bit.

But rather than shorting the stock, there may be a better approach to InterDigital's long-term potential. That is to set a limit order to buy shares below the current $31 price, and perhaps to purchase call options in case the clouds around the company start to lift later this year or next year.

"There's the potential for a very large revenue stream, but it's going to take awhile to work out all the [legal] agreements to bring that about," says Amit Kapur, who follows InterDigital for Piper Jaffray in Minneapolis and thinks the stock is worth $5 less than its current share price.

InterDigital spent the 1990s selling wireless phones based on hundreds of patents the company was granted by the U.S. Patent and Trademark Office. It has since dumped the equipment business and makes money licensing the patents.

With over 500 relevant patents granted in the U.S. and over 1,500 abroad, InterDigital is poised to strike deals with numerous handset makers, the company and analysts believe.

In January, LG Electronics, the fourth-largest cellphone maker, agreed to pay InterDigital $285 million, and to license its technology for so-called third-generation phones that can browse the Internet at speeds approaching
cable modems.

Nokia, the biggest handset maker, followed in late April, paying $253 million to InterDigital. And an arbitration panel this week ordered Samsung, the third largest, to pay $134 million.

"Nokia and Samsung are verification that their core third-generation patents are substantial," says Chris Ambrosio, a wireless analyst with market research firm Strategy Analytics in Newton, Mass.

But InterDigital is a work in progress, and the choppy waters of wireless patent battles could prove tough for its stock in the near term.

The Nokia and Samsung agreements are for royalties owed -- royalties for future phone sales must still be negotiated. Those royalties boost cash for InterDigital because patents have basically a 100% gross profit margin.

InterDigital generated $209 million in cash from operations, less the cost of property and investment in patents, in the June quarter, up from a loss of $2 million a year earlier. So patent payments can be a windfall.

But the timing is tricky. The wireless patent world is in quite a storm at the moment. In June, Nokia said it would no longer make phones using certain technology developed by Qualcomm, which has a license business very similar to InterDigital's. Nokia and Qualcomm are locked in a dispute over Qualcomm's licensing terms for some other technologies.

"It's possible Nokia and Qualcomm won't reach any agreement by April" of 2007, when Nokia's current license with Qualcomm expires, says Tom Carpenter, an analyst with Hilliard Lyons. Carpenter this week changed his rating on InterDigital to Underperform from Buy because the stock had reached his $34 12-month price target. He says the uncertainty around the Nokia/Qualcomm battle casts some uncertainty over InterDigital's potential deals.

In the absence of any new deals, InterDigital's recurring phone royalties will fall by 15% next year, says Piper's Kapur.

To smooth out the income statement, InterDigital Chief Executive William Merritt says the company might start making its own cellphone chips, a business that would offer more steady sales. The company already makes money developing chips with European giants Infineon Technologies and Philips Semiconductors. But becoming a chip designer in a profitable fashion is tricky. Any kind of chip business will require capital and will dilute that pristine gross margin.

InterDigital won't do anything precipitous, insists Rich Fagan, the company's chief financial officer. "We run the business on current and projected cash flows, and the cost of capital to achieve that," says Fagan. "When you focus on that, the profit and loss drops out correctly and you achieve the returns shareholders desire."

Still, not knowing what that plan may be is another cloud over the stock.

Short sales represent 7% of InterDigital's publicly traded shares, higher than the 4% and 5% for JDS Uniphase and Juniper Networks, two of the biggest short positions.  Rather than join the short-sellers, it may make more sense to put in a limit order to scoop up InterDigital shares at a reasonable valuation. If InterDigital traded at Qualcomm's multiple of 21x next year's expected profit per share, instead of its current 28x, its shares would fetch $24 to $25.

A limit order could be combined with the purchase of call options near the current price of $31 expiring six months from now. That would allow one to lock in the chance to buy shares should the stock start moving up, with less money at risk than buying the stock.

With important blueprints for the future of cellphones, InterDigital is a company to keep an eye on.

The substantial risks that its licensing deals won't come through anytime soon, however, suggest options and limit orders are probably the sober way to keep a hand in the company's potential.

____

Full Disclosure:

. Tom Carpenter owns shares of InterDigital Communications. Hilliard Lyons did not have any investment banking relationship with InterDigital Communications in the last 12 months, according to documents from Hilliard
Lyons. Hilliard Lyons has a Neutral rating on the stock.

. Piper Jaffray did not have any investment banking relationship with InterDigital Communications in the last 12 months, according to documents from Piper Jaffray & Co. Piper Jaffray has an Underperform rating on the stock.

WirelessLedger.com editor's note: The majority of analysts who cover InterDigital rate the company "outperform" "buy" or "strong buy." Their share price targets range up top $41.  Read their latest analyst reports on InterDigital here.

Posted by: enyaw
In reply to: Desert dweller who wrote msg# 164606
Date:8/11/2006 11:49:48 PM
Post # 164607

I would surmise that a large quantity of the shares traded on Black Monday were shorts and naked shorts, both of whom are now covering, therefore the rise in price. IMO.

Posted by: revlis
In reply to: MJPLIFE11 who wrote msg# 164405
Date: 8/9/2006 8:53:42 AM
Post # 164409

MJP,

IMo, institutional buyers are discipline buyers. They will pay a price based on their models. It is the sellers who are the problem. As long as there are enough of them who are willing to sell to them at those prices, the price will be in this range.

mo

Posted by: my3sons87
In reply to: None
Date:8/9/2006 8:42:35 AM
Post # 164404

Institutional holders (new) have increased by 34 since March 31, 2006. 21 new positions as of March 31st, and 13 more as of June 30th, 2006.

What a way to go.

Posted by: Desert dweller
In reply to: mschere who wrote msg# 164368
Date:8/8/2006 11:12:36 PM
Post # 164386

mschere, you have to wonder with them jumping in with both hands as quickly as they did, helping to cause the dramatic price rise during June & July, did they exit just as quickly? Somebody sold those 10 million shares on that fateful day and I would imagine it was likely that the newbies sold out some or all of their positions. I could be totally wrong on this but who was part of that massive dump? Not all of today's institutions are always the type of investor we need for sustained price rises IMO.

abridged post
Posted by: dmiller
In reply to: bulldzr who wrote msg# 163965
Date: 8/4/2006 7:14:13 AM
Post #

bulldzr...Perhaps you checked out when the numerous discussions were going on about dividends on this board. NOT everybody was for them, far from it. Also, I posted that excerpt because the buyback is a sore point with me. Mgt won't declare a dividend because they won't fully benefit from it.

Just keep buying back shares so the dilution from their lavish options, gets diluted and becomes less noticable...lol

Posted by: dmiller
In reply to: None
Date:8/3/2006 10:12:49 PM
Post # 163960

Finally a voice of reason!

From Tom Carpenter:

We believe the $150 million would have been better spent paying a $2.50 to $3.00 special dividend to shareholders. We much prefer special dividends or patent acquisition over share buybacks. In our view, IDCC’s share repurchases have benefited shareholders little, instead recouping ground lost through generous past option grants.

"1/23/06 Born On Date for IDCC"

"Major Insider Dumping" 6-9-06 To 6-29-06

"Black Monday" 7-10-06 31.08 31.14 25.43 25.89 10,447,200 25.89

Posted by: j70k
In reply to: None
Date:8/2/2006 12:06:16 PM
Post # 163740

I hope that WM's comment that our business model allows a large portion of future deals to fall to the bottom line is fully comprehended. The potential for revenues to jump sharply out of nowhere,without expenses increasing,should make any analyst think twice about down grading with targets below current prices.The old way of analyzing revenue flows and percent increases will not cut it in predicting the future value of this company.

We are in the sweet spot with 3g sales continuing to expand and an almost mania regarding cell phones worldwide.Because our portfolio of patents is so diverse and ahead of the curve, we are going to attract a lot of attention in the consolidation game.Look out shorty, just once I'd like to see a huge gap opening and watch the scrambling begin.Pay back can be a bitch!

Posted by: j70k
In reply to: None
Date:7/31/2006 12:24:57 PM
Post # 163373

Currently we are the darling of the shorts/hedge funds and my concern is what can be done to prevent the whip-saw action we experienced this past month.

Buy backs and the prospect of new deals and a favorable arb decision have not deterred these forces from playing us like a fiddle. Selling shares by management will always be with us as long as options remain as a compensation tool.Options are a fact of life in today's business world, so to believe that this is the root of all evil is simply naive.

The one event that would upset the short game is the evaluation of our company's enterprise value.What is our portfolio of patents worth to a have-not in the wireless game? Instead of a piece meal approach of licensing, why not find out what the whole is worth on the market place? Waking up to an offer considerably higher than the closing price would send a clear message to the manipulators that new licensing deals is not the only way to evaluate our company.

Once the sam arb results are known, there would never be a better time to find out just what our assets are worth.This is of course JMHO.

Posted by: dmiller
In reply to: The_Net who wrote msg# 163289
Date:7/30/2006 6:20:52 PM
Post # 163298

The_Net...it's human nature to want to place the blame somewhere. Imo it was the culmination of a
number of things which came together to cause the drop. Analysts upgrades and downgrades have done
little in the past to move this stock much. We trade over 10 million shares in one day as a result
of PJ putting out a little blurb which basically said that IDCC the stock has gotten ahead of its

price target? I just don't believe it.

*Stock had a huge run in a very short period of time.
*Short volume went up significantly during the run-up.
*Insiders were dumping millions of shares.
*No additional licenses in almost 7 months.
*Samsung taking much longer than people thought.
*Bad market

I believe all of the above contributed to the perfect storm coming together for the decline and the
volume. If it makes you feel better to place the blame solely on PJ so be it but ask yourself why
all of a sudden an analysts paragraph could create a selloff with that kind of volume when it never
has before.

Posted by: mschere
In reply to: olddog967 who wrote msg# 163290
Date: 7/30/2006 5:40:37 PM
Post # 163295

Although S/E has a paid in full 2G license through 2006..IDCC's 1st. Quarter 2007 earning's will include S/E 2G money based on their REPORTED sales through December 2006..a fact that appears to be lost by some "Analysts"..

Posted by: olddog967
In reply to: JimLur who wrote msg# 163274
Date:7/30/2006 4:55:09 PM
Post # 163290

Jim: The problem with all the analysts' estimates is that because of IDCC's need to sign additional licensees, nobody really has a good idea as to what IDCC's revenues (and resultant earnings) will be next year. The following are the 2007 revenues ($ millions) estimated by the analysts in their latest reports:

Kapur..........$168.7
Ciarmoli......$194.3
Marsala.......$215.6
Ryan............$317.7

With such a wide range it is obvious that there are significant disparities in the factors used in the computations.

Kapur's at $168.7 was based on estimated revenues of approximately $42/quarter. Since recurring revenues for the first quarter 2006, were $49.6, it would appear that his future revenue forcast is understated. He did not explain his figures except to say that there will be a loss of 2 and 2.5G income. I assume he means that SE will have a paid up license at the end of this year; and, I guess

Samsung will also have a paid up license, if the arbitration if ever finalized. However, I don't think this would fully explain a $7-8 million decrease from current recurring license revenues. It is obvious his figures do not include any revenue increases from existing licenses and any new licensees.

Under Kapur's target pricing method, revenue is a key factor. His computation of $25 was based on 5 times revenues/number of shares + est $9 per share cash.

RE:

For my part I disagree with his numbers and wonder how he can be so far from the other analyst's numbers?

He has 2007 EPS at 21 cents while Marsala has 97 cents and Ryan has $2.08. Even the new analyst Ciarmoli is at $1.13. I could find Carpenter's EPS for 2007 but if he has one I'n sure it isn't around Kapur's number.  He has 2007 EPS at 21 cents while Marsala has 97 cents and Ryan has $2.08. Even the new analyst Ciarmoli is at $1.13. I could find Carpenter's EPS for 2007 but if he has one I'n sure it isn't around Kapur's number.

Posted by: kikoboer
In reply to: The Count who wrote msg# 163241
Date:7/29/2006 6:49:57 PM
Post # 163244

Count: I applaud your rapier whit, and wish you would post more often. It seems that an honest, well express opinion is attacked rather than rebutted on this board, as it should be. That said, I still believe manipulation of the highest order was executed on IDCC by a number of skilled players, whether PJ was a willing player or not remains to be seen. However; I do not believe in coincidences, and far to many occured on that Monday for me to think that this was just a case of sh..t happening to poor little IDCC. Maybe it was the perfect storm, and those of us who lost in the 6 figures should have trimed our sails and stayed in port, but alot of very smart posters did not see the storm coming and took a bad beating. IMHO Kiko

Posted by: Learning2vest
In reply to: None
Date:7/29/2006 3:11:14 PM
Post: 163238

Here is another Saturday afternoon chat room "Oh Pine" re Wall Street "analysts": No question in my mind that there are some very qualified folks doing some solid equity analysis work these days. The problem I have STARTS with the fact that none of that high value/high cost analysis work is available to me as an individual investor.

Most individual investors like me cannot afford the fees charged to have timely access to the "good stuff" that comes from the really qualified Wall Street analysts. IMO it's only the big boys that we are playing against who can afford the going rate for that privilege.

I could live with that "you gotta pay to play at this level" aspect of the equity analyst game if it stopped right there.

"Be-ah-Be-ah..BUT!"...(and here comes the fire that burns MY tender hiney)... IMO the investing public gets played for suckers by a secondary release of pure "WALL STREET ANALYST" crappola! ALL of the "for public consumption" analyst stuff comes later than the good stuff, and IMO it is always carefully crafted to respect the paying client's positions ahead of the "f