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 "for free" masses.

So who should we hoist up on the rail to be tarred and feathered? -i.e., the bush league analysts who get paid to publish the phony stuff for public consumption and manipulation of small investors, or the media hacks who feed it to us like it was the real thing?(Wow! that is some shocking stuff getting typed out right there. must be the extra mustard on my chili dogs.)

My answer is to do our own analysis and let that whole "analyst for free" charade be just another sideline consideration.

Posted by: The Count
In reply to: bulldzr who wrote msg# 163226
Date:7/29/2006 12:52:42 PM
Post # 163234

What did Amit Kapur do wrong?

So many folks having fun mocking Amit Kapur by messing with his name. I'm sure he's mature enough not to let adolescent barbs on an internet message board bother him, but they bother me. It reflects poorly on this board because Mr. Kapur did nothing wrong. On the contrary, he did his job very well. He saw the price run up 40% on no news and downgraded to market underperform based on valuation. The market proved him right. He is an analyst whose job is to assess stocks. He is supposed to push stocks on the most optimistic assumptions. That was tried, remember the internet bubble? He did nothing dishonest or unethical. He gave his honest opinion.

If anyone can dispute any of his analysis, go ahead. But it is silly to criticize him just because he doesn't tell you what you want to hear. If you go to the doctor and he tells you not to eat foods you like does he become a quack? Personally I believe that he is too conservative regarding IDCC. His income projection seems low and his price target does not include any upside potential from new licenses. While I disagree with him it doesn't mean I have to disrespect him. Nor should the company give him the cold shoulder because he's not jumping up and down pumping the stock. It will be a nice boost when IDCC signs the next big contract and he jumps on the bandwagon. When skeptical investors who watch this stock see the skeptical analyst become a believer, then they become buyers. There is such a misguide expectation of loyalty in regards to IDCC stock. It is such a puzzling concept to me.

Does anyone really believe price declines can be stopped by "strong hands"? What we need for a run up without a fall back is real news that changes the fundamentals going forward. Remember LG? We were trading in the 15-19 range. Gapped up to 22.44. We haven't fallen back to the old range because the fundamentals changed. Since then the range has been 24-28. Only new income streams will permanently lift us above that. Not the strength of the hands nor the loyalty of the shareholders.

Frank

Posted by: loophole73
In reply to: None
Date:7/27/2006 12:28:22 AM
Post # 163026

Spencer 3

Keep your eye on the chip potential. It seems we are getting positive news bits from our alliance partners. The only draw back on the chip front is our ability as investors to know and understand the revenue potential involved. As bad as I dislike Siemens, I will be rooting big time for its son and grandson, IFX and Commeon.

MO
loop

Posted by: loophole73
In reply to: loophole73 who wrote msg# 162892
Date: 7/25/2006 11:57:30 AM
Post # 162894

Spencer 2

We must also look at the chip progress during the second half of this year. If IDCC suddenly receives revenue from its chip agreements and still has not signed additional licenses by year end, then we can feel fairly confident the additional licenses will be forthcoming. So, I guess you could say that no new licenses and no chip/engineering service revenue progress by year end will cause me to seriously consider changing my investment strategy.

My gut feeling is that we will see the additional licenses and chip/engineering service progress before year end.

MO
loop

Posted by: loophole73
In reply to: spencer who wrote msg# 162891
Date:7/25/2006 11:42:54 AM
Post # 162892

Spencer

IDCC has put a deadline on signing additional 3g licenses via its discussions by upper management. I continue to believe that the most important due diligence matter is the ability of management to execute its business plan effectively enough to produce the results contained in their slide show forecast. This logically dictates that I and every other investor will have to make some serious decisions if the remainder of 2006 goes by without IDCC licensing additional 3g players. I have not placed any deadlines, but since I listen when IDCC speaks, I guess you can characterize my position as being end of the year sensitive.

MO
loop

Posted by: j70k
In reply to: None
Date:7/21/2006 1:48:00 PM
Post # 162648

There is definitely a changing of the guard going on in tech, with the old stalwarts, Intel, Microsoft, Dell etc. having to redefine themselves due to converging technologies. This capitulation,IMO,is a very good sign for IDCC. When a shift like this occurs, large companies with lots of cash must make adjustments, and the result is usually a consolidation of future players.

With tech getting hammered, an oversold Nas,and our earnings continuing to rise, the time has never been better for an explosive move up.

Don't let naysayers steal your shares, because,imo,that is what they just tried to do with the downgrade. There will be a premiun added to our value on speculation of a buyout because this company is a gem for any future player in the multi-media computer business. I wouldn't be surprised if another attempt is made to confuse the long term prospects of this company, with some short term FUD.

Hang on, the future has never been brighter, and the most important fact is that the macro shift has begun for our industry.

Posted by: rmarchma
In reply to: ebelog who wrote msg# 162553
Date:7/20/2006 1:15:13 PM
Post # 162568

Ebelog re preliminary earnings projection for second quarter

I made a preliminary earnings projection for the second quarter after IDCC gave guidance for the quarter in May. I usually do not try to project the year, only for the quarter. I might change my diluted EPS number for the second quarter due to the relatively high stock price for IDCC at the end of the second quarter. This made more of IDCC's outstanding stock options in-the-money, which will increase the diluted shares for EPS calculations. However the company's buyback will decrease the diluted shares, so I am at a quandary at this point over weighted average outstanding shares.

Posted by: rmarchma
In reply to: lastchoice who wrote msg# 156396
Date:5/30/2006 2:37:26 PM
Post #of 162367

Preliminary Earnings projection for second quarter as follows:

Total Recurring Revenues $50.5m (midpoint of guided range)

Product and Technology Revenues $1.5m (midpoint of guided range)

Interest Income $4.0m (also includes two months interest on Nokia’s $253m payment)

Nokia settlement $228m

Panasonic prior years earned royalty $12m

Panasonic current quarter recurring $1.5m (my estimate)

Less: Operating Expenses -$36m ($32.8m previous quarter + 10% midpoint of guided range increase)

=Income Before Tax = $261.5m

Less: Income Tax Expense -94.1m (at 36% midpoint of guided tax rate)

= Net Income =$167.4m

Basic Earnings per Share at 54m weighted shares = $3.10 earnings per share

Diluted Earnings per Share at 56m weighted shares = $2.99 diluted eps

I would imagine that in addition to the basic and diluted earnings per share, most everyone will probably calculate an adjusted earnings per share by excluding the Nokia settlement and the Panasonic prior years earned royalty.

Adjusted Income before Tax excluding Nokia and Panasonic $21.5m

Adjusted Income Tax Expense at 36% $7.7m

Adjusted Net Income excluding Nokia and Panasonic $13.8m

Adjusted diluted earnings per share = $.25 cents per share

http://www.investorshub.com/boards/read_msg.asp?message_id=11349755

Posted by: jimmylee
In reply to: None
Date:7/19/2006 10:23:12 AM
Post # 162431

Schwab is rating IDCC as Outperform today

InterDigital Communications Corp
IDCC:NASDAQ Schwab Equity Rating (data as of 7/14/2006)

This Week's
Rating:
Outperform (data as of Jul 14, 2006)
Percentile Ranking = 30
Last Week's Rating:
Marketperform (data as of Jul 7, 2006)
Percentile Ranking = 3

JL

Posted by: spencer
In reply to: None
Date:7/18/2006 4:01:19 PM
Post # 162350

InterDigital Announces Date for Second Quarter 2006 Financial Results Release and Conference Call

KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--July 18, 2006--InterDigital Communications Corporation (Nasdaq:IDCC) announced today that it will release its second quarter 2006 financial results before the market opens on Wednesday, August 2, 2006.

InterDigital will host a conference call on Wednesday, August 2, 2006 at 10:00 a.m. Eastern Daylight Time (EDT) to discuss its second quarter 2006 performance and other company matters. For a live Internet broadcast of the conference call visit www.interdigital.com, then click on the link to the Live Web Cast on the homepage. The company encourages participants to take advantage of the Internet option.

To access the conference call by telephone within the U.S., please dial (877) 505-0448 by 9:50 a.m. EDT on August 2 and ask the operator for the InterDigital Financial Results Call. Participants calling from outside the U.S. should dial (706) 679-3165.

In addition, a replay of the conference call will be available for 30 days on InterDigital's web site in the Investing section. A replay by phone will be available from 1:00 p.m. EDT August 3 through 11:00 p.m. EDT August 6. To access the recorded replay, dial (800) 642-1687 and use the confirmation code 3029193.

Due to the listen-only nature of the web cast, questions or comments should be directed before the call to InterDigital's Investor Relations department via e-mail at: investor.relations@interdigital.com. The company will address e-mail questions on the call as time permits.

Posted by: whizzeresq
In reply to: None
Date:7/18/2006 3:25:37 PM
Post # 162338

GRIPE-O-METER SAYS BUY IDDC--This is from my perspective as a holder of IDCC since before Motorola and is really designed for anyone thinking of buying IDCC. Because of its nature, IDCC is a very volatile stock. It usually presents excellent buying opportunities a couple of times a year after a huge shakeout (for reasons that will be discussed below), usually in connection with insider sells. These shakeouts generally happen after a huge run up and result in margin call liquidations, the wiping out in value of hundreds of thousands of options, and the drop of thousands, if not hundreds of thousands of dollars on paper among IDCC shareholders who post on this board. As a result, huge pizzing matches result between longs and shorts and managment supporters and their detractors. The severity of the pizzing match generally indicates the potential buy signal. We now see one of the biggest pizzing matches since the recent run up and could be a buy signal, or show one is close. Right now, both IDCC and the Nasdaq are severely oversold on a technical basis and although no technical buy signal has been generated, it could be a good time to consider IDCC.

Back in June, the short statistics showed a big increase in IDCC shorts and by early July, these positions had a huge loss. In early July, there was a Forbes article suggesting that these short positions could suffer further because of potential short squeeze. Instead, just as long shareholders can double up their positions when it drops, I believe these shorts, and perhaps additional ones, decided to double up (and more) their short position. There were also thousands of option contracts representing over 2 million shares, some of which had huge premiums. Thus, there was a tremendous incentive to run this stock down. In doing so, the short positions that were at a loss were turned into huge gains and option premiums were wiped out. Because of the large run up, lack of news, margin purchases, insider sales and the general pattern of the company not responding to these types of short attacks on the stock in the past, the shorts took the advantage of the negative Piper Jaffrey report to mount another attack.

As a long term shareholder, what I have learned is to expect these short attacks, to expect insider sales, to expect long periods of no news, to expect the company to remain silent during these short attacks and to expect stock volatility. After all of these attacks, management has delivered additional contracts and the paper losses have turned back into gains. These are the times when one should consider buying if you think that the company will enter into additional 3G contracts and if you believe the validity of the other analysts who recommend IDCC. If good news comes, the shorts will have to cover, fueling a further potential increase. Don't buy after the run ups, especially do not use margin after any run up, don't buy options, especially after any run up.

I believe in IDCC's technology and that this stock should be over 100 in a year or so if management delivers on the potential and depending on the overall market. By purchasing at these entry points for long-term capital gains, an investor will be in good shape if management delivers. This does not mean that I support management. I believe that management has been overcompensated and contributes to these huge shakeouts by their actions and I have not voted for a recommended director in many years and have relayed my concerns with management to IR. I do, however, believe in the technology and that managment will ultimately deliver to a sufficient degree that I will make a good gain on this stock. Thus, if this stock goes to 100, it really won't matter if management has been overcompensated, and I won't gripe that Rip Tilden, Howard Goldberg and many others made a fortune through insider sales.

This is all IMHO and any potential investor should do their own due diligence.

Posted by: ziploc_1
In reply to: dmiller who wrote msg# 162153
Date:7/17/2006 5:02:41 PM
Post # 162164

dmiller: one of the advantages in placing a trailing stop is that the brokerage firm does not send the order to the market maker until the trailing stop price is hit. The regular stop order is sent immediately to the market maker who then may play off of it by bringing the price down to the stop, buying the stock, and then letting the price go up again.(at least this is my understanding)

Posted by: dmiller
In reply to: navinjohnson999 who wrote msg# 162138
Date:7/17/2006 4:12:12 PM
Post # 162153

Here's some info about Stop Loss orders....

I use the limit stop most of the time.

MINIMIZING LOSSES AND PROTECTING GAINS THROUGH STOP LOSSES

*Excerpted from "The 4 Biggest Mistakes in Short-Term Trading"

Too often traders are inordinately focused on getting into the right stock at the right time at the right price. While important, it's everything leading up to being in the right stock (discipline and planning) and getting out of it that will ultimately determine the success of the trade.

Next time someone tells you their stock portfolio is up by 50%, challenge them by asking, "That's great, but what have you done to protect that profit?" If they look at you with glassy eyes and no recognition, then a 50% paper gain is nothing - it could be gone tomorrow. If they tell you they have Stop Losses in place to protect a large percentage of their gain then that is something to respect.

When the trade is finally completed, our profit will be based on the timeliness of our exit. In volatile markets where winning trades can quickly turn into losses, it is of paramount importance to focus on cutting losses early and protecting profits. Without a well thought out exit plan, it won't matter how much time you spend on picking the right stock or the optimal entry point. Unfortunately too many short-term traders don't understand how valuable having a predetermined exit point is.

No one likes to admit they've picked the wrong stock or made a timing mistake, but the worst mistake is not planning for it. Trying to make an exit decision while watching the trade go against you is nerve- wracking and often leads to less than desirable results. What could have been a calm, preventive and well thought out decision can all of a sudden become an emotional one and before you know it you are "Riding a Loss." AND, the longer you ride it the more difficult the decision of "when is enough, enough?"

Consider the following example:

"Yesterday I entered two trades on the same stock, of which I planned a downside exit on one and not on the other. On the first purchase I planned for an exit and got stopped out with a mere 5% gain. Later in the day the stock came back, soared and I'm up 25% on the second trade. Not a bad day, up an average of 15% between the trades for the day. But today, ouch! After the open, a major company issued an earnings warning and the market tanked. Not having a stop in place I rushed to my computer and found that my "winner" as of yesterday was now sitting at a loss of 20%, effectively rendering a 15% averaged loss over 2 days."

What is it they say: "A bird in the hand is worth two in the bush?"

What ultimately determined the success of these trades? It was the exit point. Had a Stop Loss been used on both trades it could have been a profitable situation. Although this is only a hypothetical example, it clearly illustrates that no matter where traders enter a stock, the bottom line profit will depend on where they exit. Had a third position been added with a wider stop it may have run up to a 100% profit. It all came down to the exit point.

When you are planning trades, and right up until the moment of the entry, you are in control. Thereafter, however, the market will dictate whether the stock rises or falls. You can't control this, just like you can't control with 100% certainty what amount of profit (or loss) will result. But what you can control is minimizing losses and protecting gains through Stop Losses.

WHAT IS A STOP LOSS?

Most short-term traders are at least aware of stops, but since this is such a vital aspect to managing risk, let's digress to "trading 101" for a moment.

A Stop Loss or "stop" is a type of sell order used to literally do what it says, "Stop Losses." Putting stops in place on all positions forces traders to calmly decide, "when enough will be enough" in advance. They can be used to minimize losses or to protect gains. Yes, you will lose on some trades, but the trick is to keep losses manageable. Whether there is specific news particular to a stock, or the entire market is crashing, the stop will get you out, and depending on the position at the time, it will either minimize the loss or protect the gain.

The most commonly used Stop Loss is a "Stop Order." This type of order authorizes the broker to put in a sell order when the stop price is reached. A Stop Order turns into a Market Order when the stock's price reaches the price that you've set. In effect, the stock will be sold immediately or else at the "best available market price" regardless of the price. There is a very good chance of a stock selling at a price lower than the stop price, but from time to time it has been seen to fill at a price slightly higher than the Stop Loss.

A "Stop Limit" is much the same as a Stop Order, but instead of turning into an executable Market Order it becomes an executable Limit Order. A Stop Limit Order says in effect that you want to sell if the price falls to a certain level, but you won't take any price lower than the Stop Limit. If you have placed a Stop Limit Order of 50 and the price falls to 49 before it can be executed, your Stop Limit Order won't get filled. The limit price must be first triggered to activate the stop, and then it must stay there long enough to get executed. The reason a Stop Limit Order may not be filled is because the orders are put into sequence by the exchanges. If the price is falling fast and is below the limit price before the exchange gets the order at the top of the sequence, it may not get filled. As you can imagine, this could be very dangerous, and if not cancelled, would only serve the purpose of being executed if the price of the stock bounces off its low and moves back to or above the Stop Limit price.

From time to time you may also hear the term "Trailing Stop." A Trailing Stop can be either a Stop order or Stop Limit but is one that moves in the direction of the trade, initially minimizing losses. As time goes on, a Trailing Stop will protect a larger and larger percentage of any profits. Although the feature of Trailing Stops is gaining popularity, as a general rule of thumb, traders must still take action to cancel an existing stop and replace it with a new stop order. In the future trailing stops may become a standard feature among brokerages, so check with your broker from time to time. At some point, it may be possible to set your own "Trailing Stop rules," walk away and forget about it.

WHY EVERYONE DOESN'T USE STOPS

Those of you who have the opportunity to communicate with fellow traders may hear some very successful traders argue that they never use Stop Losses, at least not in the mechanical sense of actually entering a Stop Loss Order (Stop) with their broker. However, if they are planning their trades and trading their plan, successful traders WILL have a price "in mind" at which they will exit the trade if it is not going in the direction they intended. This is a "Mental Stop" that, if adhered to, can be just as effective as entering a Stop with your broker.

Note the operative phrase, "if adhered to," which is synonymous with discipline, which some traders have more of than others. If you are able to monitor and execute "Mental Stops," then great, by all means do so. But, if you are planning to walk away from the ticker screen and take a break, then a "Mental Stop" or an alert in your trading system doesn't do much for you because you are not there to execute. Execution . . . the key element of actually stopping a loss.

If stops are such a good way to avoid riding losses, why doesn't everyone use them? There are many reasons why stops are not widely used but the primary ones are:

** Many traders are just unaware. With the advent of online trading and all the hype about managing your own trades, a new generation of "short-term traders" has sprouted out of nowhere. Though "ignorance may be bliss" in some situations, it is more often suicidal in short-term trading. In these instances new traders may have the common sense to plan a trade or follow a trend but in many cases their knowledge may be limited to knowing how to place a buy or sell order.

** Not all brokers allow Stop Losses (which contributes to the ignorance factor) or they may only allow stops on certain stocks or on stocks that are above a certain price. This is nonsense and is not in the best interest of the trader. If you want to protect a trade by using stops, as is strongly recommended, then shop around and get another broker.

** From time to time a stock exchange will place a temporary, stock- specific ban on stops due to market volatility. When this is in effect there is nothing you can do about it. Note that it is temporary and you can choose not to trade the stock, or to use a "mental stop." If you choose the latter make darn sure you can monitor the stock's performance and be ready to execute the "mental stop" if the situation arises.

** Finally, there are instances where long-term investors with as much as 80-90% appreciation in their portfolio may not want to incur the taxable gain of selling, even if the stock is falling in price. This is a personal decision, but if nothing else, an understanding of stops makes this an informed decision.

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

Posted by: ebelog
In reply to: nessco who wrote msg# 162077
Date: 7/17/2006 10:51:43 AM
Post # 162077

Please explain to me how after we report at least a dollar a share in earnings that this stock will not at least stabilize? The volume here is drying up and we are in a wait and see mode, this is a HIGH BETA stock, high risk/reward ratio and that is why we are here. Hang in there or sell it are the moves you can make. I'm hanging in with the understanding that the reward will be greater than the risk

Posted by: olddog967
In reply to: navinjohnson999 who wrote msg# 162032
Date: 7/16/2006 7:59:34 PM
Post # 162034

navinjohnson: Short selling has been around for a long time. While you may consider it unethical, it is not illegal. Here are a couple of sites you could look at. The first is a brief explanation of short selling, while the second is some background history. Basically, short selling involves borrowing stock that you don’t own and selling it on the open market. You then buy it back at a later date, hopefully at alower price, and as a result, making a profit. What the recent controversy is all about is a technique called “Naked” short selling where you sell stock you don’t own, but not borrowing it and making no attempt to do so.

http://www.prudentbear.com/press_room_short_selling.html

http://www.prudentbear.com/press_room_short_selling_history.html

RE:
question regarding shorting... i am unfamilier with it.. has this been an option in the market for years? betting the company will fall in value just seems unethical, and lends itself to corruption..

Posted by: lando1
In reply to: vg_future who wrote msg# 161677
Date:7/13/2006 10:03:38 AM
Post # 161706

VG, I agree with you. The runup to $35 was justified by all the things you list, and is duly recognized by the other credible analysts who see a $40 value. Logic tells us that investors/traders in a sour market are always looking for undervalued investments to move their money to, and we are greatly undervalued. Money moves from weak positions to strong positions. The runup was logical, expecially as it occurred in a weak market. The selloff is another question.

lando1

Posted by: optionchain
In reply to: The Count who wrote msg# 161670
Date: 7/13/2006 9:41:47 AM
Post # 161695

Count, nice post but 10 million shares on Monday has me still believing something is fishy. 5 million, maybe not so much but 10 million is extreme and seems colluded in my mind.

Posted by: vg_future
In reply to: The Count who wrote msg# 161670
Date: 7/13/2006 8:14:28 AM
Post # 161677

The Count, I disagree with one of the points that you make. This is exactly the type of mind set that I was referring to in one of my earlier posts. Some of the share holders (maybe a lot) are under the impression that we went to 35 for no apparent reason and probably we went there just by fluke/sheer luck...if that is true...then one has to agree that IDCC doesn't have goods, IDCC is not guranteed to get close to 55 mil a year from LG alone for next 5 years, IDCC doesn't get anything else from other licensees, IDCC doesn't have any agreements with infineon and Phillips, and so on (list goes on). With this mind set, it is quite understandable that there were lot of profit takers the other day. The rise to 35 might have been a little bit faster considering the fact that the rest of the market was really shitty during those 2 weeks. But, I sincerely believe that IDCC deserved that price valuation and much more. I thought we were being recognized as a strong player in the market. When was IDCC given proper valuation in the past? IDCC got around 250 mill from NOK ($5 in cash), but, did it get that reflected in the share price at all. IDCC recognized the Panasonic moneys, did it get that reflected in the share price. This list goes on....my point is that we deserved every bit of that run up to 35.
Sadly, the manipulators had help from profit takers, short sellers, panic sellers.

GoodLuck All!
-vg_future

Posted by: The Count
In reply to: None
Date:7/13/2006 2:13:52 AM
Post #of 161670

Random thoughts about recent price movements

Why is it that whenever the stock has a decline without obvious cause it is a conspiracy of shorts and other evil doers, yet when it goes up for no apparent reason no one ever accuses anyone of manipulating the price up? If there was manipulation of IDCC’s price, this time it was to push it up so they could sell or short it over 30, and then let it fall back and buy back. But you’ll never hear anybody consider that. No, when the price goes up the market is finally catching on to our little secret. News flash, IDCC needs to execute additional 3G licenses to significantly and permanently raise the price.

Analyst puts out a report months ago showing IDCC with a target price of 25 (when the stock is at that level) and a market perform rating. The price of the stock goes rather quickly to 35 on no news. He downgrades to market underperform citing valuation. What a load of consistency and logic. Yes, let's all vilify him because he isn't willing to “bet on the come” on this stock. Oh, but his downgrade cost IDCC hundreds of millions in market cap. Too funny. PJ can cause 20% of the shares to trade? If you believe that then get rich just jumping on their upgrades/downgrades. The stock had run up on who knows what and people were waiting for the top to sell. When there was a break in the stock price there was a selling frenzy. The price is now about 10% higher than when the run started - not bad for two months. Here's a crazy prediction, Amit upgrades to market perform because the valuation has come back into line with where he thinks it should be. To an unbiased observer it would be some astute analysis on his part, but here he will be a moronic unethical stumblebum until he is the most optimistic analyst, at which time he will be a brilliant man with a shrewd insight into IDCC.

Evil management sells their shares at high prices. Oh horrors. I'm glad we have management that is smart enough to sell on the upswings. No, that can't be it... let's consider legal action and contact the SEC. They sold because they had insider knowledge that bad news was coming to hurt the share price so they got out. But wait, there was no news to cause the drop. Fk it, my portfolio took a hit and I KNOW it ain't my fault. Screw the facts, sue somebody - this IS America after all. Somebody (other than me) has to pay for my failure to sell at the top. I do believe each of us can sell whenever we want to, can't we?

Once again IDCC runs up on significant volume with no real news to support such a move. Someone knows something, there’s a leak, big news coming. Wrong again. It happens every year or two. IDCC news has been preceded by very normal trading in almost every instance. If there ever is a leak, it will be from the other company that is about to enter into a contract with us.

"Mister", you sound like an illiterate spurned lover. You appear to be very angry about IDCC. I suggest you forget all about it because it only makes you miserable. But then some people just like to bitch. I just wish you’d find some where else to do it.

Here’s hoping Mr. Merritt has a nice 3G contract to announce in the near future so everyone can enjoy life.

Posted by: JimLur
In reply to: panl0ver who wrote msg# 161396
Date:7/11/2006 9:26:14 AM
Post # 161414

I can't post it but if you send me an email request I will send it to you or anyone else that wants it.

I pointed out yesterday that PJ estimates earnings for 07 at 21 cents while Marsala has it at 97 cents.

j.lurgio@comcast.net

RE:
Was a copy of the new Piper report ever posted?

Posted by: my3sons87
In reply to: None
Date:7/11/2006 8:31:13 AM
Post # 161391

Frank Marsala has used a very choice string of words in his re-iteration today. (competitor's downgrade). That is a hell of a statement and says this guy Amit Kapur is strictly full of shat.

First Albany Capital/IDCC/Strong Buy: We Believe IDCC Valuation Is Compelling; Reiterate Strong Buy and $40 Target

* IDCC shares sold off almost 20% yesterday following a competitor's downgrade. With the IDCC share price at $25.89, we are presenting
our valuation case for IDCC shares, and we note that IDCC now
trades at a discount to its peers in the intellectual property
(IP) space

Posted by: JimLur
In reply to: None
Date:7/11/2006 8:25:39 AM
Post # 161390

To all, Frank Marsala counters with a strong buy on IDCC. Maintains a 40 dollar target.

http://wirelessledger.com/25411.pdf

Posted by: drrtl
In reply to: laranger who wrote msg# 161385
Date:7/11/2006 8:23:30 AM
Post # 161388

First Albany Capital/IDCC/Strong Buy: We Believe IDCC Valuation Is Compelling; Reiterate Strong Buy and $40 Target

* IDCC shares sold off almost 20% yesterday following a competitor's downgrade. With the IDCC share price at $25.89, we are presenting our valuation case for IDCC shares, and we note that IDCC now trades at a discount to its peers in the intellectual property (IP) space.

* Licensing of IP can be lumpy, as it is characterized by "one-time" bookings associated with past infringement and presents some difficulty predicting when future settlements will occur. Given these factors, some investors look at these companies on the basis of EV to trailing 12-month revenues (EV/TTM). On this basis, we note that IDCC shares are valued at 7.8x EV/TTM versus the peer group average of 11.6x.

* Looking at forward revenue multiples gives a similar result. IDCC is valued at 5.9x our 2007 estimated revenue of $215.6 million, while the group multiple is 7.2x. We calculate the shares would be priced at about $30.75 if IDCC shares were valued at the peer group multiple.

* We reiterate our Strong Buy rating as we are comfortable that the company will report results in line with its guidance and that it remains positioned for positive estimate revisions before the end of 2006. We believe current estimates could be revised upward due to a favorable settlement with Samsung, as well as from agreements with new licensees.

Posted by: Learning2vest
In reply to: Shoes1954 who wrote msg# 161253
Date:7/11/2006 7:42:09 AM
Post # 161382

Shoes,

IDCC has not announced the date they will report 2nd qtr results. Here is last year's PR with the report date. Good chance they will do things in about the same timeframes this year, i.e., set the date in a PR within the next week or so.
..................................................................................................................

"InterDigital Announces Date for Second Quarter Financial Results Release and Conference Call

KING OF PRUSSIA, Pa.--(BUSINESS WIRE)-- July 18, 2005 --InterDigital Communications Corporation (Nasdaq:IDCC), a leading designer, developer and provider of advanced wireless technologies and product platforms, announced today that it will release its second quarter financial results before the market opens on Thursday, August 4, 2005.

InterDigital will host a conference call on Thursday, August 4, 2005 at 10:00 a.m. Eastern Time to discuss its second quarter performance and other company matters."

.............................................................

- Here is the 2nd qtr guidance IDCC gave us a few weeks ago. It is the strongest quarterly outlook that I can remember seeing from this, or any other, company.....and,... it has upside potential from Panasonic(see bolded). Gitty up time is coming....

"InterDigital Issues Revenue Guidance for Second Quarter 2006; Solid Recurring Royalties and Recognition of Nokia Revenue Benefit Quarter

KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--May 30, 2006--InterDigital Communications Corporation (Nasdaq:IDCC) today announced that it expects total second quarter 2006 revenue to be in the range of approximately $291 million to $293 million.

Expected revenues for second quarter 2006 include the following approximate amounts:

$228 million associated with the resolution of a dispute with Nokia related to a prior patent license agreement,

$50 million to $51 million of recurring patent license royalty revenue from its base of existing licensees,

$12 million of patent license royalty revenue related to resolution of a licensing matter with Panasonic, and

$1 million to $2 million of revenue related to technology solution agreements.

Additionally, InterDigital expects to recognize the balance of the revenue related to Nokia's $253 million payment this year, recording $12.5 million per quarter in each of third and fourth quarter 2006. Panasonic is obligated to provide InterDigital a royalty report for first quarter 2006 sales. As InterDigital has not yet received the report, the second quarter 2006 forecast does not include per unit royalties from Panasonic.

Richard Fagan, InterDigital's Chief Financial Officer, noted, "We continue to benefit from solid contributions from our existing base of patent licensees and we remain optimistic about our prospects for growth as we continue to capitalize on opportunities in the growing 3G market. While the recognition of a large portion of the payment from Nokia in the second quarter will create an unusual quarter, the payment provides further validation as to our ability to generate value from our intellectual contributions to the wireless industry."

Posted by: idccjoe
In reply to: None
Date:7/10/2006 4:25:39 PM
Post # 161277

The Perfect Artificial Storm.......

Here is something I posted today over on the Motley Fool Board. Since there were many worried new investors over there, thought I would try to provide some reassurance. I am not as sophisticated in inner workings of the market as many over here, and would hear your input on my hypothesis....

**************************************************
With no news coming from IDCC or MF let me share some thoughts.

As an investor in IDCC for several years, though I might provide some insights of my own as to today's price action....

If you look at IDCC's chart you will find many ups and downs over the years (high Beta), however, the long term trend is up. As recently as May of last year an analyst from Wells Fargo issued a move from 'Hold' to 'Sell', with a price target of $10/share. It moved from about $17 to a low of about $14 that day. It quickly moved back to trade between about $17 and $19 until the LG announcement in January when it moved up to about $23 or so.

As for the most recent movement, remember we have been defying the overall market by moving up on exceptionally higher than normal volumes over the past couple of months.

Many forces at work here. Initially driven by high expectations of more licensee signings...primarily named is Samsung, with whom we have gone to arbitration before an International Arbitration Panel. With the announcement of a settlement with Nokia this past April over similar issues, many have been expecting a similar settlement announcement. We've been hearing “any day now” from many.

This positive upward action has also attracted those who follow price movement...momentum investors. Knowing little about the company, this group is strictly in for a quick turn and will jump ship in a heartbeat.

Others who have made money over the years by shorting the volatile and formerly lightly traded IDCC have been caught off guard by this unusually steady upward price movement on higher than normal volumes. Consequently, there are many 'shorters' out there in trouble. As a Holiday week, last week's volume was lower than normal. This is just my speculation, but this lower volume with no news coming from the company gave shorters an opportunity to get a foot in the door to successfully drive the price downward. This led to some questions by new investors...what's wrong with IDCC...it's not moving up.

This AM's downgrading to “underweight” by Piper Jaffray played right into this scenario...setting up the "perfect artificial storm". The price began to drop in pre-market. As the price continued to drop, stop orders began to kick in...some just wanted to lock in their quick profits....others just became worried enough to throw in the towel.

Here we are at little after 2:30 PM on Monday, July 10, 2006...Down $6.50 (about 20%) on over 8.5MM shares traded...AND ALL OF THIS ON NO NEWS FROM THE COMPANY!!! Is this insane or what! The 'sky is not falling'.

For like me who have done their homework and are in it for the long haul, what a great opportunity this represents. In time the truth will be known...hang in there.

Good Luck...Jo

****************************************************************
Thoughts and comments appreciated.

Thanks...Jo

Posted by: captainslog
In reply to: None
Date:7/10/2006 3:46:18 PM
Post # 161268

Totally Overblown, Overreaction to 1 analyst's report.

Amit thinks this is a $25 dollar stock after a favorable NOK resolution and a full blown LG 3G license? What did Amit think the stock was worth before these events? $5.00.

Anyone buying into this sour grapes report by Amit doesn't understand that Piper lost business with IDCC or there is some other external motivation.

IDCC is so much more valuable than $25.

People who overreact are going to loose big time money in this stock. All the woulda coulda shoulda hand wringing over one guy's report who seems to be WAY out of touch with wireless and IDCC's position.

All I have to say is this is an E ticket ride, if any of you remember the old days of Disneyland ticketed rides.

Whoever owns stocks knows it isn't a smooth ride, so for the overreactors out there, stop wringing your hands, and get out of the kitchen. Get into a nice long-term CD and make sure you get your 5% a year.

Posted by: j70k
In reply to: None
Date:7/10/2006 12:10:27 PM
Post # 161170

The last time we got blind sided by some innocuous report(Ford Research), shortly thereafter positive news was issued (Nok settlement), and we shot back up. Hopefully, the same will happen again, but what bothers me is how drastic the down movement is and on huge volume. Without news to substantiate this kind of movement, it seems like a concerted effort to drive the price down before good news hits. The question is by whom-hedge funds that thrive on volatility or maybe a suitor about to make an offer? As usual, we are the last to know what is going on, but if anyone here can offer up any explanation as to the timing of this drop, without blaming it on insider trading and/or PJ downgrade, please let us know.

Posted by: orientbull
In reply to: None
Date:7/10/2006 9:13:46 AM
Post # 161034

MO..they are the one who put out a price target of 22 while IDCC was trading at 25..They did not believe IDCC can sign any 3Gs..The stock has been outperformed the market for the last six months and the last week, the stock has been trading with the market...The rating should be outperform before and market perform now..They must be working for shorts or hedge funds..The selloff last week must be due to them prior to their press release today..Dont get suckered into selling..MO..

Posted by: rmarchma
In reply to: vg_future who wrote msg# 161009
Date:7/10/2006 8:54:16 AM
Post # 161017

Of the analysts that cover IDCC, PJ's Kapir and Walkley seem to have the least understanding of IDCC's operations, finances, and technology, and thus the least appreciation of its potential IMO. An analyst cut is never good, but a cut coming from Piper Jaffrey is not as bad or meaningful to me as a cut coming from one of the more knowledgeable IDCC analysts17

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

Posted by: vg_future
In reply to: None
Date:7/10/2006 9:10:32 AM
Post # 161032

revlis, some people don't mind twisting facts just for their personal benefits....another lie....the downgrade is not from Strong buy it is from Market Perform. I hope IDCC teaches these guys a real hard lesson.

-vg_future

Posted by: sjratty
In reply to: None
Date:7/10/2006 7:02:08 AM
Post # 161991

Piper Jaffrey cuts IDCC to "underperform"

WL: Posts relating to this Forbes article FOLLOW this article

Posted by: idcc2003
In reply to: None
Date:7/4/2006 9:06:31 AM
Post # 160632

Streetwalker
Five Short Squeeze Plays

07.04.06, 8:30 AM ET

Could these five stocks be bear traps?

When traders think a stock will fall, they can make money selling it short. This involves borrowing shares and selling them in the hope of buying them back at a lower price. But evidence of short selling doesn't always mean a stock is doomed. If the stock rises, short sellers are often forced to cover their positions by buying back the borrowed shares they've sold. Such a "short squeeze" sometimes pushes the stock even higher.

To find a few short squeeze candidates, we looked for a 30% or greater rise in short interest (the amount of shares sold short but not yet repurchased) in the past month, as well as short interest greater than 2% of float. We also limited ourselves to stocks trading within 15% of their 52-week highs and those that have gained more than the Standard & Poor's 500 over the past year. We took only companies with estimated three- to five-year (annualized) earnings growth of 10% or better.

Squeeze The Shorts

Prices as of June 30
*Month-over-month change in the total number of shares that have been sold short and not yet repurchased
**Annualized, projected next three to five years
Sources: FT Interactive Data, Reuters Fundamentals and Thomson First Call via FactSet Research Systems

http://www.forbes.com/2006/07/01/stocks-investing-streetwalker-cx_jr_070406streetwalker7.html?partne...

Posted by: lastchoice
In reply to: idcc2003 who wrote msg# 160632
Date:7/4/2006 9:19:01 AM
Post # 160639

awesome!  idcc stood out with the highest market cap, and best peg.

RE: Forbes "Five Short Squeeze"  article aobove

Billion--with a 'B'

-abridged post-

Posted by: Bill Dalglish
In reply to: idcc2003 who wrote msg# 160632
Date:7/4/2006 8:02:22 PM
Post # 160663

Forbes article today is very POSITIVE- not negative

When I first read the new Forbes piece today ("Could these five stocks be bear traps?" see below) I thought, "Darn! Forbes is encouraging investors to SHORT InterDigital." That would be negative for shareholders.

http://www.forbes.com/2006/07/01/stocks-investing-streetwalker-cx_jr_070406streetwalker7.html?partne....

BUT- upon closer reading, I see that identifying IDCC as a potential short SQUEEZE will more likely encourage investors to BUY IDCC shares because the large number of shorts may well get squeezed - that is be forced to cover their positions by BUYING shares -- because the share price very likely will continue to go UP.

So,thanks, Forbes! Looks like you are getting the picture. InterDigital is now being perceived by Wall Street as a winner.

WL: Posts relating to this Investors Business Daily article FOLLOW this article

Posted by: idcc2003
In reply to: None
Date:7/4/2006 9:06:31 AM
Post # 160632

The New America

Chip, Software Maker Courts A New Identity

BY DANIEL DEL'RE

INVESTOR'S BUSINESS DAILY

Posted 7/3/2006

Now that InterDigital Communications (IDCC) has established itself as a force in the courtroom, Chief Executive Bill Merritt wants to steer the telecom chip and software maker back to its core business.

InterDigital holds more than 2,000 patents on telecom chips and software that enable cell phone users to download large files and run advanced features like video clips.

In December the company won a $253 million patent-infringement victory over cell phone goliath Nokia (NOK). Not long after, it won a similar case against Panasonic for $19.5 million. Those legal victories likely will speed up a lingering case against Samsung.

InterDigital would prefer to end all the legal wrangling that started under former CEO Howard Goldberg. He dragged into the courtroom any company that infringed on InterDigital's technology or refused to pay royalties, watchers say. It was a costly and time-consuming strategy.

In the three-year battle with Nokia, InterDigital filed suits with courts in Texas, North Carolina, Delaware and the U.K.

InterDigital also sought arbitration through the International Chamber of Commerce. "It was a very litigious and contentious way of getting paid," said analyst Frank Marsala of First Albany Securities.

Higher Ground

InterDigital's transition away from litigation comes as cell phone makers and service providers roll out new features such as streaming video. These third-generation (3G) services are designed to provide richer entertainment content and graphics.

Analysts expects 3G phone sales to outpace overall industry growth. Research firm Yankee Group forecasts that global cell phone shipments will reach 1 billion a year by 2010, up from 818 million last year. Over the same period the proportion of 3G phones in those shipments will surge from 7% to 45%.

Telecom carriers are fast at work building metropolitan networks where 3G services are available. The most established networks are in Asia, where InterDigital has made a name for itself. It licenses 3G technology to NEC, Sharp and Panasonic, whose phones are used by Japan's primary phone companies, KDDI and NTT DoCoMo.

Marsala estimates that InterDigital's technology runs on 45% of 3G phones worldwide.

Given current growth rates, he calculates that within three years, 80% of the market will be up for grabs between InterDigital and rivals such as Qualcomm. (QCOM)

To maintain a leading position, InterDigital sends its engineers to industry consortia like the 3rd Generation Partnership Project (3GPP) and the Institute for Electrical and Electronics Engineers.

Within these bodies InterDigital has worked with companies like Nortel Networks (NT) to develop international standards for communications technology.

3GPP recently accepted InterDigital's technology for reducing electrical interference and increasing data transmission speeds.

"If cell phone makers are going to be compliant with the industry standards, there's little dispute that they'll have to license from InterDigital," Marsala said.

Financially, InterDigital has begun to show more consistency after watching results bounce around for much of the decade.

First-quarter sales rose 45% from a year earlier to $51.6 million. Earnings reached 23 cents a share vs. a 2-cent loss the prior year.

Getting a consensus forecast on the company's future sales and earnings is difficult because analysts treat the Nokia settlement differently. It's also uncertain how much revenue 3G licenses will generate.

First Albany's Marsala expects 2006 royalty revenue to increase 30% to $213 million, powering a nearly fivefold jump in earnings to 93 cents a share, excluding Nokia's settlement and other items.

Analyst Tom Carpenter of Hilliard Lyons forecasts 2006 revenue of $478 million and earnings of $1.69 a share, which attributes a portion of the Nokia settlement to the bottom line.

Olive Branch

One focus moving forward will be convincing wireless companies to license InterDigital's products rather than risk thorny legal battles.

Merritt, who took over as CEO in May 2005, has played a key role in the company's shift away from legal confrontation. Merritt has a degree in mechanical engineering and designed nuclear power plants with the engineering firm Stone & Webster.

"I think his background as an engineer makes him favor a much more creative and cooperative way of working with manufacturers," Carpenter said.

Under Merritt, InterDigital has cultivated relationships with cell phone makers and their suppliers. Engineers from its 202-person research and development staff frequently present their achievements at industry conferences and host companies at InterDigital's facilities.

This exposure helps InterDigital take technology "out of the lab and put it in customers' hands," Merritt says.

Last summer electronics giant Philips (PHG) signed a license for telecom chips. Earlier this year, InterDigital landed a $285 million contract to license its 2G and 3G technology to LG Electronics, the world's fourth largest phone maker. Before the year is out, Carpenter expects InterDigital to sign 3G licensing deals with Nokia and Sony Ericsson.

Thorny as it was, the Nokia settlement actually clears the way for fresh negotiations.

"We have a clean slate to begin with," Merritt said. "InterDigital has good technology, a strong patent portfolio and has shown we can work with people in a collaborative fashion."

http://www.investors.com/editorial/IBDArticles.asp?artsec=7&issue=20060703

Posted by: JimLur
In reply to: mschere who wrote msg# 160601
Date:7/3/2006 9:09:20 PM
Post # 160609

mschere, This comment from the article is not true and very unfair to Howard Goldberg and the company and I think most of the long term investors would agree with me.

The author Daniel Del'Re said, "InterDigital would prefer to end all the legal wrangling that started under former CEO Howard Goldberg. He dragged into the courtroom any company that infringed on InterDigital's technology or refused to pay royalties, watchers say. It was a costly and time-consuming strategy."

This guy really needs to do some research on who IDCC sued.

I'm going to e-mail this guy or call him and wake him up. His comments not only hurt Howard but also the company.

Posted by: spree99
In reply to: Danny Detail who wrote msg# 160621
Date:7/4/2006 8:22:19 AM
Post # 160624

Totally RIGHT, I read that article (WL: see above) as if I never heard of IDCC and I thought, damn this would be a great investment, who cares if it is not one hundred percent accurate, let the author spin it as if it was Harry's mistakes, point is the article concluded that IDCC was moving in a different direction, I can't think of a more positive article

Posted by: Danny Detail
In reply to: Desert dweller who wrote msg# 160615
Date:7/4/2006 6:31:55 AM
Post # 160621

Jimlur and Desert Dweller .. We have been waiting years for IDCC to appear on WS's radar and equally long for the company to no longer be perceived .. rightly or wrongly .. as nothing more than a litigious tax collector. It should now be clear to everyone on this board that it was this negative perception that has kept a firm lid on the stock price for so long and that WS now believes that WM has all but eliminated the past perception and replaced it with one that will result in IDCC maximizing and stabilizing recurring revenues from its IPR. IMO this article could not have been more rationale and positive in publicly validating to its investment readership IDCC's significant and relatively rapid turnaround. I can't fathom why you or anyone else on this board would want to take the author to the woodshed where you will attempt to set him straight. Straight to where? Back to the pre-WM days?????

"We have a clean slate to begin with," Merritt said. "InterDigital has good technology, a strong patent portfolio and has shown we can work with people in a collaborative fashion." That is a quote in the article from IDCC's current CEO. What is your guess as to what his impression is of the article and the writer? The same rhetorical question can be asked about the two IDCC analysts quoted there. I hasten to point out that they cover several other leading companies in the industry. Any chance they are merely reporting on the industry's changed perception of IDCC for the better?

Please resist the urge to snatch defeat from the jaws of victory in your zealousness to right past wrongs inflicted on IDCC by WS. The past is past. The future couldn't be brighter. 'Nuff said.

Have a great Fourth.

Danny

Posted by: captainslog
In reply to: None
Date:7/4/2006 3:24:51 AM
Post # 160619

Good press is good for IDCC.

Truth or fiction, IDCC was stuck with the label of the company that sued to make a living. That is the impression of many in the wireless industry even if it isn't true. I know more than a few engineers or lower level managment types who associate litigation with IDCC. This article, like the NOK settlement, seems to try to clean the slate.

Journalism just ain't what it used to be. Look at the NY Times. The article came down strongly on IDCC's side and sets the tone for a new era. Ture or not, if individuals in the industry begin to belive that the old management is at fault for not advancing the company, let the old managment be hung with that crap.

New managment has behaved with far more professionalism than the old one. The old ones gave us such choice quotes at the engine and transmission and it's only a matter of filling int he blanks. What they said only confirmed that they were way out of touch with the reality of their own company's position.

In my opinion, the article is without mistake in that it paints the perception of IDCC from the point of view of the industry.

Fiction or not, there are far better battle than to put the writer's feet to the fire for helping IDCC out of years and years of their bad reputation.

All in MYHO

Posted by: dndodd
In reply to: mschere who wrote msg# 160605
Date: 7/3/2006 8:32:08 PM
Post #

here ya go with the short version (WL: stock checkup published in June)

IBD Stock Checkup Analysis:

Interdigital Comm receives an overall rating of A+, which is in the 98th percentile of all stocks in the Investor's Business Daily database. The overall rating is calculated using five proprietary ratings that measure each stock's Technical and Fundamental qualities and the Technical and Fundamental qualities of the industry group that it resides in, as well as a rating on the stock's current price attractiveness.

Interdigital Comm receives a Technical Rating of 99, which places it 1st out of 68 stocks in the Telecom-Wireless Equip group.

Interdigital Comm receives a Fundamental Rating of 83, which places it 13th out of 68 stocks in the Telecom-Wireless Equip group.

Interdigital Comm receives an Attractiveness Rating of 99, placing it 1st out of 68 stocks in its group.

The Telecom-Wireless Equip group's technical rating of B ranks it in the 81st percentile of the 197 different Investor's

Business Daily Industry Groups. The Telecom-Wireless Equip group's fundamental rating is C, ranking it in the 63rd percentile of all groups.

Posted by: mschere
In reply to: dmiller who wrote msg# 160603
Date:7/3/2006 8:01:27 PM
Post # 160605

While it has Nine Factual Errors...They spelled InterDigital , correct..Most readers will check out IDCC's IBD ratings (WL see above) and be in for a pleasant surprise..

RE:
Great article...thanks!

mschere

Posted by: nabokov
In reply to: my3sons87 who wrote msg# 160449
Date:6/30/2006 10:42:55 AM
Post # 160461

IDCC has jumped a little over 80% in the last six months. What would account for that?

In my opinion one thing and one thing only: the money has arrived. Historically, IDCC has been up and down, up and down, based on patents and potential and litigation results. The street, after several of these drastic rises and drastic declines, seemed to take the approach of "show me the money." It's here.

Posted by: Learning2vest
In reply to: xdx who wrote msg# 160018
Date: 6/24/2006 10:13:15 AM
Post # 160021

The most interesting thing about that 1995 CDMA IPR settlement and limited licensing agreement between QCOM and IDCC was what happened next IMO.

Working off the U.S. Army's foundation patents in CDMA, QCOM proceeded to develop and commercially launch a "narrowband" CDMA wireless system designed for voice(i.e., IS/95).

At the same time, IDCC used those U.S. Army foundation patents to develop and field test a commercial "broadband" CDMA fixed wireless system designed for robust transmission of packet-based data(i.e., B-CDMA).

Today we know that the QCOM mobile voice system enjoyed great commercial success while IDCC's fixed location B-CDMA system did not find a market and was superceded by the firm's decision to move ahead in developing a "mobile" version of B-CDMA. This investor's thesis is that the air interface in what we know today as W-CDMA "FDD" has much in common with IDCC's development work on that "mobile B-CDMA" system.

That bit of history gets interesting when we take note that both QCOM and IDCC proceeded to launch two very different commercial versions of CDMA wireless systems after their 1995 settlement. Apparently QCOM had all of the CDMA IPR they needed to commercially launch their "narrowband" CDMA voice system, AND more importantly, IDCC had all of the CDMA IPR they needed to commercially launch their "broadband" B-CDMA fixed wireless system.

IMO that means the two firms had in effect "split the CDMA IPR deck" to suit their very different business objectives back in 1995. They went separate ways in developing commercial system applications of the U.S. Army's basic CDMA technology, and each firm patented the work they did along the way.

As a result, QCOM has great IPR strength in "narrowband" CDMA technology today while IDCC's IPR strength lies in "broadband" CDMA. I see two mutually exclusive CDMA patent portfolios that are to a large extent aligned with the wireless standards(there are exceptions of course, such as QCOM's "soft handover" patents which appear to be essential in all of the current CDMA standards).

If that scenario is on target(?), it bodes well for IDCC's contribution value in 3G and also helps to explain the rate reduction pressure QCOM is currently experiencing re W-CDMA.

Posted by: xdx
In reply to: URBS who wrote msg# 160017
Date: 6/24/2006 8:08:06 AM
Post # 160018

URBS: you left out something. Q did pay Interdigital some $5 million when Interdigital was at the edge of bankruptcy. Though some may question the desperation being experienced by Interdigital which enabled the "peanuts" payment and the ultimate value Q successfully developed and cultivated from those patent rights, that $5 million payment enabled Interdigital to be where it is today. You can not rewrite history, but Interdigital sure has a much greater control on its future than it had in the past. While I am not a Q fan (nor an enemy), they did contribute to our survival.

RE:
OT A little history. IDCC did start in a garage under the symbol IMMC. think 'International Mobile Machines Corp' I picked up a few shares in '81 for $3.00

Q got into the business the good old America way. IMMC came to them for some developmental testing and Q liked the idea so much they gladly TOOK the opportunity. Q was looking for a peace time, post war project.

As for the big 'M', when IMMC offered a private demonstration of their wild new concept they rented a SEPTA bus and invited a few guests for the ride. "M" spies jumped on as the doors were about to close.

Both these companies are the epitome of American business ethics. Enron just had less luck but until the tide turned they were the darling of Wall Street and many made fortunes- at the expense of honest folks. So you 'Q' fans, enjoy the ride but excuse me for not wishing you lasting luck.

Posted by: spider69
In reply to: None
Date:6/23/2006 4:02:38 PM
Post # 159996

I'll take it.....thanks IDCC, like 32.75 to 34.00 for the week, I'll be happy with that percentage each and every week through the rest of the year

(1 week IDCC chart:)

http://finance.yahoo.com/q/bc?s=IDCC&t=5d

(WL: InterDigital and Philips have previously partnered for cell phone chip development)

Posted by: Gamco
In reply to: Gamco who wrote msg# 159894
Date:6/22/2006 1:05:48 PM
Post # 159895

Philips to Sell Semiconductors Stake

Wednesday June 21, 5:26 pm ET
Philips Says It Will Sell Majority Stake in Semiconductors Division

AMSTERDAM, Netherlands (AP) -- Royal Philips Electronics NV, Europe's largest maker of consumer electronics, said Wednesday it plans to sell a majority stake in its semiconductor division by the end of the year via a public offering.

Analysts have valued the unit at roughly 6 billion euros ($7.6 billion). It had sales of 4.6 billion euros ($5.8 billion) in 2005, and operating profits of 307 million euros ($388 million). As a stand-alone chipmaker, it would be the 11th largest in the world. The majority of the unit's sales are in Asia, with a little less than a quarter in Europe.

In December, Philips began steps to legally separate the unit, which it said then was a prelude to a merger or sale. Philips said Wednesday it will spin the unit off as a new, independent company via a public offering of shares, "and/or" selling a majority stake in it to private investors.

The move to separate "is a further step for Philips in moving away from a focus on high volume electronics," Chief Executive Gerard Kleisterlee said in a statement.

Philips shares rose 4.7 percent to close at 23.86 euros ($30.01) in Amsterdam trading.

For nearly a decade, analysts have debated whether the business would have more value as a stand-alone company or as an in-house supplier for Philips, which uses computer chips in an array of products ranging from household appliances to DVD players to industrial medical equipment.

But more than 90 percent of the unit's sales are outside Philips, with strengths in mobile communications, automobile chips, digital displays and networking equipment.

In Europe, Philips' semiconductor unit competes with two larger rivals, Infineon Technologies AG and STMicroelectronics NV, with 2005 sales of 6.8 billion euros ($8.6 billion) and 6.6 billion euros ($8.34 billion) respectively.

Spinning off the unit is also expected to reduce volatility in Philips' earnings, due to the highly cyclical nature of the semiconductor industry.

Philips said it will chose a name for the new company in the next three months.

Eric de Graaf, an analyst at Petercam, was cynical about Philips' motives in choosing a share offering rather than a merger.

Philips "apparently has been unsuccessful in finding an industrial partner" to strengthen the unit's prospects. "That was Plan A," De Graaf said.

Posted by: xdx
In reply to: vtem01 who wrote msg# 159836
Date: 6/22/2006 7:35:02 AM
Post # 159849

vtem01: Ever consider a Mot(orola) purchase of IDCC? They have the cash; we have the goods. While I would not want to see anyone purchase IDCC until it approaches fruition (and to me, that's north of $200 per share), I still am sensitive to this possibility.

Posted by: JimLur
In reply to: None
Date:6/21/2006 5:12:52 PM
Post # 159799

To All , Here's a interesting IDCC ownership report as of 06/06/2006.

Take a peak under the mutual funds and note that Fidelity Contrafund has taken a new position in IDCC for over 400,000 shares.

It's my understanding that this fund manager is mentioned on Kramer's quite often. I don't watch the show but if any of you investors do maybe you could afford what Kramer has said about this fund?

http://wirelessledger.com/Report1.pdf

Posted by: Danny Detail
In reply to: JimLur who wrote msg# 159594
Date:6/21/2006 8:43:12 AM
Post # 159673

To All .. Everything that follows is strictly my opinion FWIW

As a shareholder my ONLY interest is that all employees be highly motivated to perform to the highest of their abilities within a team framework to make the company as successful as it can be. I recognize and accept that if such individual motivation is not ever present the company will at best underperform and at worst fail completely. Most importantly in that instance the only thing I can do to prevent my holdings from suffering a similar fate is to sell before it is too late.

Motivating each key member of a company to perform at the maximum of their individual abilities can't be achieved by continually reminding them that they have an overriding responsibility to the shareholder owners to do so. The best managements from a shareholder perspective are those that recognize that maximizing shareholder value is a result of incentive compensation systems comprised of the right mix of cash, non-cash and "morale building" elements that are closely aligned with the personal desires of that particular employee group. No matter how "hard-earned" the money stockholders invest, they have little or no direct effect on the success of the company, only the employees do. In that regard, the more restrictions placed on the sales of stock granted to insiders the less effective they become as motivators for maximum personal achievement.

Regards,
Danny

Posted by: Corp_Buyer
In reply to: MTJBKH who wrote msg# 159638
Date:6/21/2006 1:30:25 AM
Post # 159660

"potential dilution from options at IDCC" - as I recall the 2000 ISO Plan, it was sold to shareholders as a 10 year replacement for the prior expiring ISO plan. With 10M new ISO shares, it represented about 20% dilution of the company at that time.

Although 2x rich IMO, the 2000 Plan was approved by shareholders. Amazingly, just a couple of years later shareholders also approved a 2M share expansion! And, without shareholder approval, management also added to the existing RSU plan significantly (1.5M or 2.0M more RSU shares) for a total of 3.5M? shares in the RSU plan. When management proposed another 5M shares addition to the 2000 Plan in 2003, the math went something like the data below.

As you may know, shareholders rejected management's request for 5M more shares for the 2000 Plan, so in April 2004, HC implemented the LTCP, which seems to be of similar magnitude cost to shareholders, but without the need for shareholder approval. As well, the expanded 2000 Plan and expanded RSU plan remained in place, along with the Regular Bonus plan, all of which the LTCP logically could have replaced. We then had a lot of RSU grants and the recent windfall ISO acceleration. Here are some data I collected on the 2000 ISO Plan in considering the 5M proposed expansion in case this helps give you a head start on your updated analysis:

GRANTS:
2000 per 10K 2,513,000
2001 per 10K 5,109,000
2002 per 10K 1,056,000
Total Grants last 3 Years 8,678,000
Average grants per year 2,892,667

EXERCISES:
2000 per 10K 686,000
2001 per 10K 184,000
2002 per 10K 695,000
Total Exercised last 3 Years 1,565,000
Average Exercised per year 521,667

TOTAL Grants and Exercises:
2000 per 10K 3,199,000
2001 per 10K 5,293,000
2002 per 10K 1,751,000
3 Year Total 10,243,000
AVERAGE per year (3 years) 3,414,333 3,414,333

NUMBER of shares
outstanding at 12/31/1999 per 10K 48,357,000
FD @ 12/31/1999 50,495,000
Out @4/7/2003 55,539,186

PERCENT of IDCC to employees via grants and exercises
2000 per 10K 6.62%
2001 per 10K 10.95%
2002 per 10K 3.62%
3 Year Total (per 10K) 21.18%
AVERAGE % per year (3 years) 7.06%
Not incl exer.
"Securities to be Issued Upon Exercise" 10,769,434
"Remaining Available for Future Issuance" 5,603,153
Exercised (3 Year Total) 1,565,000
Total excluding 5M new shares 17,937,587
Percent DILUTION EXCLUDING 5M new shares 37.1% 29.5%

5M ADDITIONAL REQUESTED SHARES 5,000,000
Total including 5M new shares 22,937,587
Percent DILUTION INCLUDING 5M REQUEST 47.4% 38.5%

Re: "vs other companies" - see;

http://www.investorshub.com/boards/read_msg.asp?message_id=1041038

ISS recommended against the 5M ISO expansion in 2003 and shareholders defeated it, rightfully, but that did not stop HC from piling on the LTCP in addition to the remaining 2000 and RSU Plans, which shareholders obviously felt were more than adequate (without the the LTCP).

see also:
http://www.investorshub.com/boards/read_msg.asp?message_id=963696
http://www.investorshub.com/boards/read_msg.asp?message_id=995105

MO,
Corp_Buyer

Posted by: olddog967
In reply to: MTJBKH who wrote msg# 159638
Date: 6/20/2006 9:33:15 PM
Post # 159641

MTJBKH: For a quick comparison with Qualcomm, which is what we like to compare IDCC with, the following data as of end of March 2006. Not that much difference percentage wise.

..............Outstanding Shares.........Options...........%

IDCC.........55.2 million ................7.2 million.......13.0%

QCOM....1,673 million.............198.8 million........11.9%

RE:

If anyone has the time, it would be interesting to look at the potential dilution from options at IDCC vs other companies.

Posted by: MTJBKH
In reply to: idcc2006 who wrote msg# 159636
Date:6/20/2006 9:10:59 PM
Post # 159638

If anyone has the time, it would be interesting to look at the potential dilution from options at IDCC vs other companies. Lots of work, but interesting.

Posted by: Luckyk57
In reply to: None
Date:6/20/2006 4:57:59 PM
Post #of 159571

Form 4's. Buys and sells Large - Option Related
Bolgiano Sold
30,000 D $ 32.3119
153,000 D $ 33.0142
Lemmo Bought
60,000 A $ 5.6875
Brezski Sold
8,750 D $ 33.59

RE: (Form 4 SEC - options)
http://phoenix.corporate-ir.net/phoenix.zhtml?c=116582&p=IROL-sec

Posted by: lastchoice
In reply to: revlis who wrote msg# 159533
Date: 6/20/2006 2:17:15 PM
Post # 159535

now this (WL: non-royalty revenue) discussion whets my appetite. there are some great things going on that the market cannot yet value. but soon...

Billion--with a 'B'

Posted by: ed_ferrari
In reply to: revlis who wrote msg# 159537
Date:6/20/2006 4:10:42 PM
Post # 159564

Vodaphone said they are evaluating the platform, so I don't think you can call it a design win yet.

Posted by: revlis
In reply to: georgebailey who wrote msg# 159536
Date: 6/20/2006 2:36:26 PM
Post #

It is the M-Gold series. I asked a question about the design wins at the ASM but I think Mark Lemmo misunderstood my question.

revlis

RE:
thanks revlis- is this the "M-gold" thingie majig?

WL: IDCC is partnered with Infineon in "M-Gold" development. Sales of M-Gold products by Infineon bring additional (beyond royalty) income to IDCC.

Posted by: revlis
In reply to: georgebailey who wrote msg# 159529
Date: 6/20/2006 2:15:08 PM
Post # 159533

Infineon Technologies 3G Platform Selected by Vodafone

Munich, Germany – February 13, 2006 – Infineon Technologies AG, a leading supplier of communications products, announced today that Vodafone, the world’s largest mobile community, will evaluate the company’s UMTS dual mode platform. The first 3G mobile phones based on Infineon’s MP-EU UMTS multimedia platform will be available in mid-2006.

The MP-EU is the industry’s most integrated dual mode platform supporting UMTS, EDGE and GSM/GPRS cellular standards. The platform’s innovative scalability concept allows mobile phone manufacturers to address the entire range of 2G and 3G dual mode phones based on one core platform. This scalability advantage allows mobile phone manufacturers to quickly deliver a variety of cost effective UMTS phone models, while network operators can significantly reduce the verification and inter working testing that normally consumes significant effort.

“Infineon ranks among the leading suppliers of mobile platforms and we are happy to announce that in addition to our 2.5G platforms Infineon’s UMTS dual mode platform is considered by Vodafone for inclusion into Vodafone’s portfolio” said Dominik Bilo, Vice President of Sales and Group Marketing at Infineon Technologies AG. “Infineon’s 3G program is committed to provide cost effective UMTS platforms which will be extended to HSDPA soon. All these activities will greatly benefit our customers by further reducing their efforts in developing mobile phones based on the MP-EU platform.”

Posted by: georgebailey
In reply to: revlis who wrote msg# 159528
Date:6/20/2006 2:10:11 PM
Post # 159529

In Marsala's new report, key points, he describes 2006 earnings getting an additional boost from new customers for IDC's technology solutions offerings.

Other than the Panasonic design win, wasn't there someone else confirmed?

WL: Pop ups on IHub getting too annoying? Here's a suggestion by lastchoice. Another idea - purchase a premium IHub membership and avoid ALL the ads.

Posted by: lastchoice
In reply to: wilco244 who wrote msg# 159465
Date:6/20/2006 8:02:22 AM
Post # 159468

wilco, go to IE's tools menu, manage add-ons, and turn off shockwave. you can turn it on any time you want animation, but in the meantime, you get rid of so much BS!

To All, Here's Marsala's new report raising his target from 35 to 40 and rating IDCC a strong buy. http://wirelessledger.com/25272.pdf

Posted by: my3sons87
In reply to: olddog967 who wrote msg# 159252
Date:6/18/2006 1:52:10 PM
Post # 159280

Mot, Nok and Qcom only get a "C" rating from Navellier, while IDCC gets an overall "A".

I'd say perceptions are changing.

Posted by: olddog967
In reply to: dndodd who wrote msg# 159241
Date:6/17/2006 9:59:35 PM
Post 159244

dndodd: Here is Navellier's ratings on IDCC:

http://www.navellier.com/stockgrader/single_grade.aspx?stock=idcc

Posted by: rmarchma
In reply to: bulldzr who wrote msg# 159248
Date:6/18/2006 6:03:13 AM
Post # 159255

Bulldzr Navellier's funds sold completely out of IDCC sometime in 2003. I don't know if they got out just before or after Nokia decided to go to arbitration on 2G. My original point was that Navellier already knows about IDCC because his funds used to be the second largest owner of IDCC. Perhaps some of this recent volume could be coming from various Navellier funds reestablishing a large position in IDCC once again.

Posted by: rmarchma
In reply to: dndodd who wrote msg# 159241
Date: 6/17/2006 7:44:05 PM
Post # 159244

Dndodd Louis Navallier is no stranger to IDCC

At the end of 2002, Navallier's mutual funds were the second largest owner of IDCC, only behind the Heartland funds. From my compelling reasons document as follows:

"At the beginning of 2002, institutional ownership in IDCC was less than 20%. By the end of 2002, institutional ownership was 29% and climbed to over 33% at the end of the first quarter of 2003. Several new institutional investors recently established new positions in IDCC led by prominent investment guru and commentator Louis Navallier. Mr. Navallier’s mutual funds became the second largest owner of IDCC stock by the end of 2002."

http://www.investorshub.com/boards/read_msg.asp?message_id=1119045

Posted by: snowblow5
In reply to: Learning2vest who wrote msg# 159227
Date: 6/17/2006 11:46:46 AM
Post # 159229

L2V, acquisitions before 2 more 3g licsenses [with biggies] is a VERY bad idea, IMO.

Snowblow5

Posted by: Learning2vest
In reply to: Vexari who wrote msg# 159225
Date: 6/17/2006 11:34:18 AM
Post # 159227

Vex, you may want to review the last few public comments from IDCC re what they might do with their excess cash in the near term.

My take is that while dividend payouts are under consideration, IDCC management appears to be giving investors "fair warning" re seeing them invest that money(and taking on some debt leverage as well) to do acquistions.

Going a bit further, the firm's public comments since Bill Merritt became CEO have me expecting to see IDCC step up their investment levels in the area of "product" delivery capabilities. What those investments might be is anybody's guess, but whatever they turn out to be should not come as a surprise.

Posted by: GrnAcrs
In reply to: Vexari who wrote msg# 159225
Date: 6/17/2006 8:44:29 AM
Post # 159226

Vexari, go to Wireless Ledger. Here's an excerpt from that web site regarding IDC's poison pill:

My comment: Forget the $250.00 threshold...

"InterDigital has been sufficiently wary of a hostile takeover at an unsatisfactory price that the Board of Directors has instituted a "poison pill" defense.

The basic methodology for InterDigital's "poison pill" defense has been found effective in causing major delays in hostile takeover attempts, if not blowing the attempts out of the water outright. Some of the provisions of InterDigital’s poison pill strategy are deliberately kept secret to help foil the hostile takeover. The strategy involves automatically enabling a new class of stock that would be in "safe hands" of shareholders not willing to sell at the level offered. The new shares have "trump card" voting power versus the common shares (that might fall into the hands of the takeover specialist) currently held by shareholders. The strategy, at a minimum, forces the potential acquirer to become involved in a dialogue with InterDigital and avoids the blindsiding of the Board of Directors by a sneak attack.

Of course, a poison pill is only intended to prevent a hostile takeover, not a friendly acquisition. Under some conditions, the Board of Directors and shareholders might welcome a friendly takeover. WirelessLedger doubts that an offer of less than $100 per share would be viewed as friendly by the Board of Directors, because of the Company's earnings potential when 3G technology becomes dominant and annual earnings of up to $1 billion might be possible."

http://www.wirelessledger.com/TabbedPages/IDCCreport/Valuation.htm#acqupotential

WirelessLedger Home Page:
http://www.wirelessledger.com/Index.html

Bill Dalglish's last Post regarding the Web Site:
http://www.investorshub.com/boards/read_msg.asp?message_id=11611123

Posted by: Vexari
In reply to: None
Date:6/17/2006 7:55:06 AM
Post # 159225

To all here,

I have owned IDCC stock for a l-o-n-g time. I keep hearing 'how much' money they are making, and yet I have never been paid any dividends. Have any of you? Am I doing something wrong? Also, I remember a few years back, it was mentioned that IDCC had a $250.00 poison pill... therefore, if any one tried a 'hostile takeover' they would have to pay $250./share. Does anyone have any comments? (I am not good at investing). TIA.

Double Jeopardy

Posted by: redbarn
In reply to: None
Date:6/17/2006 6:46:04 AM
Post # 159223

The July Motley Fool newsletter recommends additional purchases of IDCC:

"InterDigital has performed well for us in a brutal environment for tech stocks. Of course, some of that can be attributed to the company's settlement with Nokia (NYSE: NOK), which involves $253 million in back patent royalties, already paid in full. Not surprisingly, InterDigital updated its second-quarter revenue guidance, now expecting $291 million to $293 million for the quarter. This is a one-time event related to 2G-TDMA technology, but InterDigital and Nokia have also terminated their earlier agreement on 3G products and will renegotiate. I believe this stock would have moved higher still in a better stock market, and that we will see more outperformance as InterDigital continues to win court battles and to further monetize its extensive intellectual property portfolio. I wouldn't hesitate to add new money here -- it was a top contender for my re-up."

Posted by: SSALNER
In reply to: hrbart who wrote msg# 159182
Date:6/16/2006 11:03:25 AM
Post #of 159183

hrbat,

This aint your mothers IDCC! Things have definitely changed. They have thrown everything including the kitchen sink at us and didnt even scratch the paint.

regards,
scott

RE:
Seems like the Battle is on @ pinning price @ $30 - We seem to be doing well @ $32.50 - Hope we win & burn a few shorts!!

Posted by: grither
In reply to: dndodd who wrote msg# 159159
Date:6/16/2006 8:46:21 AM
Post # 159159

Nice!! I'd like to see many more posts like that. Isn't that the whole point of investing? I remember someone posting a while ago they bought a farm. Always a good thing to take a profit. I am overloaded in IDCC bigtime and it's all for retirement.

RE: dndodd reported buying a
Porsche Carrera S with IDCC profits

Posted by: mschere
In reply to: revlis who wrote msg# 159074
Date: 6/15/2006 12:57:53 PM
Post # 159078

Not so surprising..IDCC is selling at only 8X estimated 2006 earnings of $4.12, with Samsung's 2G money and Panasonic's 3G Quarterly report pending.

Analyst Estimates

First Call Mean Estimates
Fiscal Year Ending: Dec - Last Changed: 06/14/06
YR Ending Q1 Mar Q2 Jun Q3 Sep Q4 Dec FISC YR Annual NUM Brokers (FISC) NUM Brokers (CAL)
2006 0.23A 2.93 0.38 0.58 4.12 3 3

RE:
New 52 week high. Amazing
revlis

Posted by: Dave Davis
In reply to: None
Date:6/14/2006 5:09:35 PM
Post # 158873

Talked to Janet.

She said that the company has an internal policy that allowed insiders to trade only in very limited windows of time. The windows can typically be 2 -3 days. As an example, the last window prior to this most recent one was for 1/2 a day. So, that is why all these sales are clustered so close together.

Although she could not say specifically why each person sold, she did say that it probably had more to do with the combination of the recent runup in the share price, and negative market conditions.

It's like they said to themselves: "Hey, IDCC has had a nice run and my shares are up about 100% or more, the market is ugly, maybe I should take 10 - 15% of my shares off the table." (These are my words and based on Janet's comments.)

She also referred to the table in the proxy that showed the number of options that each insider owned in addition to the number of shares owned.

This makes the amount of shares sold last Friday even less of a portion of the total amount of wealth that may be created someday for these people when IDCC reaches its full potential.

She also said everyone is grumpy today at a price level for which we were ecstatic only a week or so ago.

I found her comments to be re-assuring. Hope this is helpful.

Dave Davis

Posted by: plumear
In reply to: bulldzr who wrote msg# 158789
Date:6/14/2006 12:06:21 PM
Post # 158802

bulldzr, I'll admit, I too was concerned after the announcement of the insider sales. However, it does seem, looking at the support from buyers, that the rise in price is not based on near term, over euphoric sentiments but rather an expectation by the street that this stock is a good one to own. Many of the sellers today were likely traders and if so, volatility could decline. As long as there continues to be sellers to offset the buyers, and no news appears, the price will probably stay near this level and continue to build a base. Todays early action makes me feel more confident than ever.

post is abridged

Posted by: MSC290
In reply to: None
Date:6/14/2006 9:29:37 AM
Post # 158730

On the Radar: InterDigital Communications

from: Reuters.com Investment Channel
by Eric Dellith
14 Jun 2006

Solid revenue improvement and a climbing stock price flag InterDigital Communications on a growth screen.

With a gain of nearly 2 percent, the Relative Momentum screen has outperformed the other 18 Reuters Select stock screens since the beginning of May. We recently spied InterDigital Communications Corp. (IDCC) on this screen

A rise of nearly 4 percent so far in June more than made up for the Relative Momentum screen's 1.9 percent decline in May, netting a return of about 1.8 percent since the start of May. By comparison, second place during this period belongs to the Growth At A Reasonable Price (GARP) screen from the value category; companies appearing on the GARP screen posted an average gain of just over 1 percent since the beginning of May.

The Relative Momentum screen is designed to find companies that are posting solid revenue growth and stock-price appreciation. Because it focuses on companies that are in a solid uptrend, the screen is not concerned with low valuations. Given recent stock market volatility, though, we want to find names where valuations have not climbed too high; after all, the higher they are, the farther the potential fall if conditions take a turn for the worse. Thus, we massaged the criteria on the scoring worksheet portion of the downloadable Weekly Reuters Select Excel spreadsheet console, emphasizing lower price to earnings (P/E) and P/Sales ratios, particularly relative to the industry averages.

As indicated below, IDCC's valuation is a mixed bag, with shares priced either at a premium or a discount to the average for the communications equipment industry, depending on the ratio examined.

We also emphasized the key management effectiveness ratio return on investment (ROI) relative to the industry average. ROI, which is calculated as net income divided by shareholder equity, long-term debt and other long-term liabilities, provides a measure to gauge management's ability to effectively use available capital. Industry-wide ROI increased in the trailing 12-month (TTM) period from the five-year average. IDCC, which had a superior reading over the longer time frame, widened its lead more recently. Further, we see that this relationship holds for other management effectiveness ratios, such as return on assets (ROA) and return on equity (ROE), as well.

Incorporating these factors, IDCC, which designs and develops digital wireless technology solutions, registered the highest score of the companies recently appearing on the Relative Momentum screen.

....

Over the last year, stock prices in the communications equipment industry have enjoyed a nice rally, climbing nearly 21 percent on average. IDCC, by comparison, has advanced almost 79 percent during this period. The market's volatility over the last month, though, has caused many companies in the industry to give back some of those gains, as the industry average stock-price performance has slid more than 7 percent. Even in this environment IDCC shares have powered ahead, gaining approximately 21 percent.

The recent improvement in revenue and earnings - along with winning a significant patent dispute - helps to explain some of the ascent in IDCC shares. Although nothing can guarantee that a stock will continue its climb, downward revision in analyst EPS estimates most surely would not help. For this reason, the last requirement of the screen is that the current consensus EPS estimate is no lower than it was eight weeks ago.

Two months back, the consensus of analyst EPS estimates stood at $1.05. Today, it is $4.12, thanks largely to the windfall from the patent dispute. Looking to next year, analysts expect earnings to return to a more normal level, and they have still been upping their estimates. Two months ago, the consensus for 2007 was 94 cents; today it is $1.11.

Our back-of-the-envelope analysis of IDCC, which takes into consideration its TTM and five-year average ROI, ROA, and ROE figures, along with analyst estimates, indicates that the company can grow its earnings at an average annual clip of about 23 percent. That is less than the 26 percent that our analysis indicates is necessary to justify the current stock price. Yet, the consensus of analysts who cover IDCC and provide estimates to Reuters.com for average annual EPS growth look for a faster clip of 27 percent, indicating there may still be room for the share price to climb.

Link to article and charts:

http://www.investor.reuters.com/Article.aspx?docid=9655&target=companyoftheday&src=061406_07...

WL ed:

This is independent investment and analysis from the Reuters.com investment channel, and is not connected with Reuters News. The opinions and views expressed herein are those of the author and are not endorsed by Reuters.com.

Posted by: Learning2vest
In reply to: sjratty who wrote msg# 158697
Date:6/14/2006 8:48:22 AM
Post # 158713

Question - Why would anybody sell some of their option shares if they expected good news is coming?

Possible answer - Because they are very confident that a whole lot of very good news is coming.

Need help understanding why I think that answer might make sense?

Here is a hint: Quit looking at the recent sales and consider the bigger picture of each individual's long term investment returns, i.e., their potential "after tax" proceeds from ALL of their options.

Still not seeing why this interested observer thinks the June 9 insider sales could be bullish?

OK, see if this will do it for you: There are TWO immediate costs associated with exercising and holding options, i.e., the strike price which goes to the company, AND the tax hit on the difference between your strike price and the market price on the day you exercise and hold.

It's that tax hit thing that makes selling a few now look bullish to this observer. Based on the most recent proxy, 16 IDCC executives currently have 2,353,378 "in the money and exercisable" options to purchase. They also have lots more options which will vest in the future. On June 9, several of them sold a collective total of something like 191,000 shares which is about 8% of the currently exercisable options.

Let's assume those executives who sold are convinced the value of IDCC shares is going to be well over $100 in the next few years,.... and then take a look at why believing that would cause them to sell a few now.

Remember my earlier point about the TWO costs associated with exercising and holding? The strike price will stay the same over the life of the option, which is usually 10 years after vesting. However, and it's a big "however", the TAX HIT on exercising those options will go through the roof if and when IDCC's market value explodes up into the $100 plus range.

If IDCC is trading at $130/shr and you exercise an option with a $30 strike price you will pay $30/share to the company AND you will immediately owe Uncle Sam whatever your "ordinary income" tax rate is on the $100/share "discount" that the option gave you. That could easily be ANOTHER $30/share at that point in time. "Yikes!"

(Getting an "Ah Ha!" yet?) "Hmmmm.....$60/share next year vs $30 and change/share if I get them sometime before the value totally spikes? Gotta raise some more cash to fund a bigger exercise before that happens."

Executives only have so much money to invest in a stock no matter how wonderful the future returns might look. IMO the important question is "Do you wait until your options will cost you something like $60/share to exercise and hold, or do you sell a few now and have those funds available to exercise a lot more sometime before the tax bite doubles the cost? Then hold those "low tax" shares long term so you only have to pay the 15% capital gains tax on the full value appreciation you expect.

That scenario seems to give the greatest return even though it involves some selling along the way to raise cash.

Posted by: olddog967
In reply to: sjratty who wrote msg# 158544
Date: 6/13/2006 5:58:54 PM
Post # 158581

sjratty: Your percentages are based on the beneficial holdings as shown on the Form 4. If you consider their total holdings, including options, as reported in the proxy statement, Fagan sold 27% and Merritt 17%.

RE:
Fagan sold more than 50% of his holdings, and our CEO sold nearly 40% of his holdings.

Posted by: JimLur
In reply to: dndodd who wrote msg# 158538
Date:6/13/2006 5:38:51 PM
Post # 158570

I haven't got the filings yet but a broker just called me and said it's about 191,000 shares total that were sold. I think he said Fagan sold 50,000 and Lemmo sold a big chunk too. I also think he said it was 6 or 7 sellers.

Too bad they didn't wait and have this kind of news come out next week instead of 2 days before option expiration which is triple witching.

WL ed: SEC filings: "change in beneficial ownership of shares"

http://phx.corporate-ir.net/phoenix.zhtml?c=116582&p=irol-sec

Posted by: Ellix
In reply to: ed_ferrari who wrote msg# 158437
Date:6/13/2006 10:03:53 AM
Post # 158450

True, the presentation is about the same as before -- citing $800 mil revenue at 75% mkt penetration (now 35% to 40%)by 2010. averaging $1.50 per phone (now higher than that)....

I think some people estimated this at providing EPS of at least $7, and therefore stock price of at least $140 with a multiplier of 20x. What I am actually impressed about is that even if IDCC missed its target, merely acheiving $525 mil revenue (from the chart with penetration of only 50%), the equivalent EPS is $4.50 and therefore could be providing a $90 share price minimum -- my opinion only.

My question is: With market penetration already close to 40%, what licencees are needed to bring it up to the 50% on the presentation chart? How many of the top six need to sign up which will bring this penetration rate to 50%+? Will just the first one or two of the top six be sufficient for this?

Posted by: dndodd
In reply to: None
Date:6/13/2006 11:55:04 AM
Post # 158480

IDCC Best in group at IBD

IBD Stock Checkup Analysis:
Interdigital Comm receives an overall rating of A+, which is in the 98th percentile of all stocks in the Investor's Business Daily database. The overall rating is calculated using five proprietary ratings that measure each stock's Technical and Fundamental qualities and the Technical and Fundamental qualities of the industry group that it resides in, as well as a rating on the stock's current price attractiveness.

Interdigital Comm receives a Technical Rating of 99, which places it 1st out of 68 stocks in the Telecom-Wireless Equip group.

Interdigital Comm receives a Fundamental Rating of 82, which places it 13th out of 68 stocks in the Telecom-Wireless Equip group.

Interdigital Comm receives an Attractiveness Rating of 99, placing it 1st out of 68 stocks in its group.

The Telecom-Wireless Equip group's technical rating of B+ ranks it in the 88th percentile of the 197 different Investor's Business Daily Industry Groups. The Telecom-Wireless Equip group's fundamental rating is E, ranking it in the 28th percentile of all groups.

WL ed: This IDCC rating released June 13, 2006

Posted by: revlis
In reply to: None
Date:6/13/2006 9:15:04 AM
Post # 158432

I now know the problem. In order to hear the replay, you have to use the real player option. It is not on the window media option.

revlis

Posted by: Desert dweller
In reply to: revlis who wrote msg# 158426
Date:6/13/2006 8:48:40 AM
Post # 158428

The presentation is on IDCC's website. I listened to it last night. Merrit did a great job and although you couldn't hear the questions being asked, there was about 10 minutes worth of Q&A. Total presentation was 30 minutes long.

When you go to IDCC's website, click on the INVESTING tab, then CONFERENCE CALLS, not presentations like you would think. When you click on CONFERENCE CALLS you can then click on yesterdays call in addition to 3 other presentations/calls. You will need to provide your name and email address to hear it. You can also review the slides at the same time although the slides are the same as others. Overall a very good presentation by UB.

http://phx.corporate-ir.net/phoenix.zhtml?c=116582&p=irol-ConferenceCalls

Posted by: nokiashill
In reply to: None
Date:6/12/2006 1:37:35 PM
Post # 158347

  dont know if anyone seen this good stuff scroll down to market sifter

     http://www.usatoday.com/money/markets/sectorwatch/2006-06-12.pdf

WL ed: InterDigital and 9 other stocks are identified in the USA TODAY article as:

"BIG Sellers: High revenue growth often indicates companies on the move. Here are 10 compamies that iincreased their revenue more than 25% in the past 52 weeks. Also, their shares are nearing 52-week highs, signaling that they are Wall Street Darlings."

Posted by: vg_future
In reply to: None
Date:6/11/2006 6:11:21 PM
Post #of 158276

From yahoo board, thanks hybome37

http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=4686767&tid=idc&sid=4686...

Hager Technology - loves IDCC

by: hybome37 (50/M/Port St Lucie Flordia)
Long-Term Sentiment: Strong Buy 06/11/06 05:06 pm
Msg: 264721 of 264721

InterDigital (IDCC, $31.83)

We believe InterDigital may be close to settling the arbitration matter with Samsung. Like the prior arbitration result with Nokia we anticipate IDCC to be successful with Samsung. We estimate that Samsung will owe about $100+ million to IDCC. InterDigital also stands to ink additional patent licensing deals for 3G in the industry. The company’s substantial licensing deal with LG could be the precursor for additional 3G licensing in the industry. Both Nokia and Sony-Ericcson are likely successful licensing candidates for 3G in 2006. Further affirmation of IDCC’s ability to license 3G will be a significant positive catalyst in our view.

Recognition of the Nokia arbitration award has substantially boosted revenues for IDCC. Analysts have also raised targets on the stock recently in accordance with solid revenue recognition and prospects for additional licenses. We believe IDCC could race ahead to as much as the mid $40's before the end of 2006. Despite the recent tough sledding for tech stocks, we view the overall health of the wireless sector as favoring the resurgent IDCC

I am not sure if this the same Hager who has been and is strongly supporting RMBS (and putting out Strong Buys)

-vg_future

Posted by: optionchain
In reply to: None
Date:6/9/2006 3:44:01 PM
Post # 158166

Just noticed that January 2008 now has calls at a $60 strike price asking $2.40. That is a statement in itself.

Posted by: songioan
In reply to: None
Date:6/8/2006 3:12:53 PM
Post # 157971

OT. Chart GURUs. Like weather forecasting, technical analysis does not result in absolute predictions about the future.

In his book, The Psychology of Technical Analysis, Tony Plummer paraphrases Oscar Wilde by stating, "A technical analyst knows the price of everything, but the value of nothing".

Technicians, as technical analysts are called, are only concerned with two things:

What is the current price?
What is the history of the price movement?

The price is the end result of the battle between the forces of supply and demand for the company's stock. The objective of analysis is to forecast the direction of the future price. By focusing on price and only price, technical analysis represents a direct approach. Fundamentalists are concerned with why the price is what it is. For technicians, the why portion of the equation is too broad and many times the fundamental reasons given are highly suspect. Technicians believe it is best to concentrate on what and never mind why. Why did the price go up? It is simple, more buyers (demand) than sellers (supply). After all, the value of any asset is only what someone is willing to pay for it. Who needs to know why?

Posted by: Bill Dalglish
In reply to: revlis who wrote msg# 157689
Date:6/7/2006 2:04:45 PM
Post # 157714

Goldberg's (share price appreciation) hockey stick envisioned 2006 as the start of the handle, I recall! 

My recollection is that former CEO Howard Goldberg said that we would be at the bottom edge of the hockey stick share price pattern until 3G caught fire finally - around 2006, I think he opined. Looks like Goldberg was on the money!

Bill

Posted by: dndodd
In reply to: None
Date:6/8/2006 6:31:04 AM
Post # 157842

IBD Stock Checkup Analysis:

Interdigital Comm receives an overall rating of A+, which is in the 97th percentile of all stocks in the Investor's Business Daily database. The overall rating is calculated using five proprietary ratings that measure each stock's Technical and Fundamental qualities and the Technical and Fundamental qualities of the industry group that it resides in, as well as a rating on the stock's current price attractiveness.

Interdigital Comm receives a Technical Rating of 98, which places it 1st out of 68 stocks in the Telecom-Wireless Equip group.

Interdigital Comm receives a Fundamental Rating of 82, which places it 13th out of 68 stocks in the Telecom-Wireless Equip group.

Interdigital Comm receives an Attractiveness Rating of 99, placing it 1st out of 68 stocks in its group.

The Telecom-Wireless Equip group's technical rating of B ranks it in the 81st percentile of the 197 different Investor's Business Daily Industry Groups. The Telecom-Wireless Equip group's fundamental rating is E, ranking it in the 29th percentile of all groups.

Do you still have your hockey stick? I am going in the basement to look for mine.

RE:
You are kidding, you mean you Goldberg caculator still working? Mine went bad long time ago, can't see the digits!!

mo
revlis

Posted by: Learning2vest
In reply to: mschere who wrote msg# 157703
Date:6/7/2006 1:54:33 PM
Post # 157706

IDCC's valuation has not even come into alignment with the fundamentals already in evidence(i.e., $3.90/shr eps).

Our current buyers are just the early birds IMO. The real valuation growth here will come when the "big five" roll over on accepting Merritt's 3G licensing terms, and they will.

Ever wonder why stocks move up in a sawtooth pattern? IMO it's because the pros know rookies like us tend to lose our grip on any pullback. I think they back off buying just long enough for that to happen, and then they scoop everything off the table.

"The only way to own a 10 bagger is to hold firm on the first 9." L2v June 7, 2006

"Early Birds"

Posted by: Danny Detail
In reply to: gman1962 who wrote msg# 157585
Date:6/7/2006 12:43:15 PM
Post # 157678

gman1962 .. this thing needs a rest. 10 days up in row is very rare.

That sure would be the rational view of ANY buyer at this point, yet they continue to chase it. Who knows what is causing it, but it sure feels like some institutions feeling they are late to the party and need to make up for lost time on a potential big winner, particularly with the overall condition of the market making near term big winners few and far between.

Regards,
Danny

Posted by: Danny Detail
In reply to: lastchoice who wrote msg# 157590
Date: 6/7/2006 9:13:25 AM
Post # 157596

last .. That is potentially HUGE news! Wonder if this buying has been coming out of the Bear for institutional clients.

Danny

Posted by: lastchoice
In reply to: None
Date:6/7/2006 9:03:33 AM
Post # 157590

InterDigital Present at Bear Stearns 17th Annual Technology Conference

KING OF PRUSSIA, Pa.--(Business Wire)--June 7, 2006--

InterDigital Communications Corporation (Nasdaq:IDCC), today announced that the company's executives will present at the Bear Stearns 17th Annual Technology Conference.

The presentation will take place on Monday, June 12, at 2:45 p.m. Eastern Time in New York, NY. The presentation will be web cast live and archived for replay for one month following the conference in the "Investing" section of InterDigital's web site at www.interdigital.com.

Posted by: gman1962
In reply to: sjratty who wrote msg# 157580
Date:6/7/2006 8:40:18 AM
Post # 157585

nbfd

this thing needs a rest. 10 days up in row is very rare. in no-man's land right now with resistance and support levels. need to base in this area some and work off the over bought levels a little and set a floor for any new movement to the upside. move right now very "v"ish.

if it goes down some today, it would be better than continuing this rise....

jmho

gman

Posted by: mschere
In reply to: rmarchma who wrote msg# 157572
Date: 6/7/2006 7:50:27 AM
Post # 157578

Ronnie..All 4 of IDCC's Analysts have projected higher recurring revenue for the 3rd Quarter and even higher for the 4th Quarter..IMO: This is a result of anticipating a large increase of expensive 3G handsets sales for that period..I think they factored only the EXISTING 3G paying Licensees..

IMO:Institutions have picked up on this estimated growth, and have acted on it, as evidenced by the higher trading volume and stock price.

Gartner expects the 3G market to more than double to between 100 million and 110 million units in 2006 from 44 million units in 2005

Analyst Estimates

First Call Mean Estimates
Fiscal Year Ending: Dec - Last Changed: 06/05/06
YR Ending Q1 Mar Q2 Jun Q3 Sep Q4 Dec FISC YR Annual NUM Brokers (FISC) NUM Brokers (CAL)

2006 0.23A 2.36 0.64 0.84
3.90 4 4

Ryan is evidently factoring in some anticipated "new" licenses in the third and fourth quarter of 2006. The existing quarterly revenue stream of $52.5m + Nokia's $12.5m per quarter over the final two quarters = $65m anticipated per quarter from "existing" licensees. Panasonic should add some incremental recurring amount to the third and fourth quarters, but not enough to equal Ryan's projected numbers

mschere

Posted by: rmarchma
In reply to: songioan who wrote msg# 157533
Date:6/7/2006 6:37:29 AM
Post # 157572

Sonny re Nollenberger's '06 Revenue projections

Casey Ryan is projecting IDCC's Licensing and Product/Technology Revenues to be $489.5m for 2006, by quarter as follows:

1st= $51.6m 2cd= $292.8m 3rd= $70.7m 4th= $74.4m

The first quarter is actual, and the second quarter is projected based upon IDCC guidance. I agree with his second quarter number, as I came up with $293m for licensing/product revenues in my second quarter projection.

Ryan is evidently factoring in some anticipated "new" licenses in the third and fourth quarter of 2006. The existing quarterly revenue stream of $52.5m + Nokia's $12.5m per quarter over the final two quarters = $65m anticipated per quarter from "existing" licensees. Panasonic should add some incremental recurring amount to the third and fourth quarters, but not enough to equal Ryan's projected numbers.

Posted by: JDBJMB
In reply to: None
Date:6/7/2006 6:21:19 AM
Post # 157571

IDCC on Zack's again...
Momentum - InterDigital Communications Corporation (Nasdaq: IDCC)

Things started to get interesting technically for InterDigital Communications Corporation on Jan 24, 2006 when the stock gapped up on the open and managed to close 34% higher for the day on very heavy trading volume. Despite a negative earnings surprise for fourth-quarter earnings, released on March 9 of this year, the stock has never managed to fill that gap. Now the stock is making 52-week highs on heavy volume and has no important technical resistance in sight.

Posted by: jtaylor
In reply to: Red Angus who wrote msg# 157780
Date: 6/7/2006 5:27:50 PM
Post # 157788

Red, see Msg # 153331 on "recurring revenues."

IMO, the $253m from NOK should have the effect of increasing the share price by at least $5 per share (253/55). If, based on the $253m, a $5 dividend were generated, the share price would then go back down $5 ex dividend.

IMO, the best explanation of the conventional WS view is that there, although the $253m is "duly earned," there is no guarantee that a comparable lump sum payment will be generated again from NOK. When NOK signs a 3G license, then this will be counted as recurring revenue spaced over the period of the license agreement.

Posted by: Red Angus
In reply to: jtaylor who wrote msg# 157759
Date:6/7/2006 4:52:52 PM
Post #of 157780

jtaylor--To think of IDCC’s $253 million judgment against Nokia as isolated from the company’s revenue stream and to it only as an isolated disconnected non-recurring judgment is IMO erroneous.

The ICC and the SD of NY did not feel IDCC was entitled to such a huge award based on the color of WM’s eyes. These august bodies felt that the monies had been EARNED under the applicable provisions of the PLA.

In fact, in the past IDCC continually took hits because of its extremely high PE prior to final payment of the judgment. The royalty payments IDCC defenders continually argued were “earned” were totally discounted by the Street because “they weren’t earned until paid”. To now discount those same earned monies a second time---after payment---is to unfairly saddle IDCC with the worst of both worlds. They basically never get counted in the company's revenue stream by some people because (a) they weren't "earned" until paid, and (b) after payment they're just a one-time non-recurring judgment.

Maybe some analysts today are taking a second looke at IDCC and see the quarter billion payment received by IDCC as a part of the company’s duly-earned continuing revenue stream, and not some unconnected happening that had nothing to do with a history of the company’s earnings.

Just thoughts..........

Posted by: spider69
In reply to: None
Date:6/7/2006 2:42:49 PM
Post # 157745

While it is obvious some here enjoyed that little down spell (about what 10 minutes worth), I have enjoyed the ride the ENTIRE last 10 days. I do think we need to be realistic that this will not go up every day forever, additionally we may still see some traders take their 10% and go home. The big picture however is that institutional buying has been what has been at work here over the last week and that my LONG friends is what it is all about. Don't get excited about some of the pullbacks that are undoubtedly ahead, keep your eye on what the institutions are getting in IDCC for, longterm profitability and recurring revenue. JMO

Posted by: whizzeresq
In reply to: revlis who wrote msg# 157733
Date:6/7/2006 2:40:15 PM
Post # 157742

Revlis--you are quite correct that the fact that a stock may be in overbought territory is irrelevant as to whether the stock may go higher. To me, no one who follows technical analysis would sell IDCC today. A true student of the charts would look at the stochastic line to see that although it is above 80, a sell would require it to go below that 80 line at the same time as the MACD hooked downward. The analyst also might look at the ADX line to see if the trend has changed as well as a number of other factors, none of which indicate a sell today. IMHO

RE:
Just because a stock is in overbought territory does not mean the stock won't still go up. I seen many stocks who were in overbought territory that continued to go up. The fact that a stock is in overbought territory is a good sign, imo. I rather be in an overbought situation than in an oversold situation.

Posted by: revlis
In reply to: mschere who wrote msg# 157551
Date:6/6/2006 9:13:25 PM
Post # 157553

Mutual funds are coming to the end of the quarter. They want a winner to put in their portfolio.

It will be interesting to see what new funds bought IDCC.
mo
revlis

Posted by: Bill Dalglish
In reply to: scooby5 who wrote msg# 157536
Date:6/6/2006 9:06:28 PM
Post # 157552

scooby Support at $28.15 and Resistance: NONE

According to my reading of StockConsultants.com, support is at $28.15. $26.90. $25.48, $24.60 and more.

"Resistance above: NONE"

see:
http://www.stockconsultant.com/consultnow/basicplus.cgi?ID=sample&symbol=IDCC&88684#ttop

StockCharts.com says IDCC is in an "Ascending Triple Top Breakout" as of June 5th using the P&F pattern. They say the bullish price objective is $45.50.
see:
http://stockcharts.com/def/servlet/SC.pnf?c=idcc,P

I'm NOT a technical analyst nor even an amateur chartist (so I can't offer much explanation of TA), but my friend, Wade, shared TA sources with me.  I've been here for 11 years because I think about the FUNDAMENTALS!

When I get in touch with my intuition", I sense that this is feeling a lot like 1999 when the stock price began a sustained huge movement upwards. Surely there will be corrections along the way somewhere, so caution is always advisable.

The bullishness was premature then. Not now, IMO.

Bill

RE:
Resistance and support? Could someone post this info? Thanks. The last several days have been fun!

Posted by: mschere
In reply to: bulldzr who wrote msg# 157547
Date:6/6/2006 8:48:29 PM
Post # 157550

From IBD

Stocks being BOUGHT heavily by institutional investors. Click icons for analysis. Learn More

Stock Symbol Price* Price Change Vol % change

KNOT 19.00 +1.24 +379
BIDU 89.85 +6.59 +167
VTS 51.62 +1.81 +143
IDCC 30.67 +1.24 +136
CXW 51.21 +1.43 +134

mschere

Posted by: mschere
In reply to: Red Angus who wrote msg# 157529
Date:6/6/2006 5:56:13 PM
Post # 157532

IDCC has issued options to key personnel at a strike price of $39..Talk of insider selling is absurd..

by: hoboso_517 (64/M/New Kensington, PA)
Long-Term Sentiment: Strong Buy 06/01/06 07:34 pm
Msg: 263211 of 263215

Fagan said that the companyhas purchased about $20M of the $200M buyback.
The meeting was the most upbeat one that I have ever attended. In response to a comment fom a stockholder about the use of options as compensation, Harry unequivocally said that there will be no more option deals, but that there are still about 8M shares allotted to prior deals. At that pount, Merritt chipped in with the news that approximately 3M of those options have a strike price of $39. I found that comment to be very bullish, since the compensation committee obviously believes that value to be attainable. JMHO

-Oso

mschere

osted by: badgerkid
In reply to: None
Date:6/5/2006 1:41:13 PM
Post # 157303

Why do we always look under rocks when the reasons are out in the open?

We know that Samsung is a likely win with possible settlement talks underway. We know that Merritt expects significant revenue increases over the next several years. We know that we are trading at conservative multiples currently and at low multiples on expected future earnings.

Frankly, this has been a long-time coming and we are likely up because of new buyers and possible new funds taking a piece of the future pie. We are NOT up because of us long-time holders of IDCC buying all kinds of shares today.

My point is that we don't have to "know" something different than what is already known by everybody that has read the company's PRs.

Enjoy the ride and don't panic that a lack of news might kill this rally. Higher lows and higher highs will continue. And remember that these new highs will be on all the wires tonight and tomorrow.

IMHO

Badger

-end-

Also see: Archived "Risk and Reward"  Best Posts  for April 26th through June 4th  2006

   Archive includes the excellent reports on the June 1, 2006 Annual Shareholders Meeting