Interdigital - Be Consistent
Saturday, March 1, 2008
Interdigital announced its Q4 2007 and its annual financial results yesterday. Its net loss was reported at $1.98 million or $0.04 per share compared to net income of $20.26 million or $0.37 per share in Q4 2006. Pro Forma net income for the quarter was $3.09 million, or $0.06 per share. Below analyst estimates, this announcement was greeted with a 6% share price fall.
I am not completely surprised by this turn of events just a few days after I valued it at $75 on Sramana Mitra's site. The reason: Lack of consistency. Or like my friend would say, they are "consistently inconsistent."
A reader asked me why the Street did not think the same way I did about the company despite its great story. And one of the key reasons I stated was its inconsistency. You can read the rest of my reply here.
All said and done, I reiterate that the royalties are there to be collected. So, the money will come although not completely as a recurring revenue. So, while the market panics, there will be a few who will collect shares for cheap. They know that when this money comes, the same market will scamper to lay their hands on this stock. That is when $17.50 will look real cheap. But for those who want to make some quicker fortunes from this stock, ask William Merritt and his team to BE CONSISTENTLY CONSISTENT.
I am not completely surprised by this turn of events just a few days after I valued it at $75 on Sramana Mitra's site. The reason: Lack of consistency. Or like my friend would say, they are "consistently inconsistent."
A reader asked me why the Street did not think the same way I did about the company despite its great story. And one of the key reasons I stated was its inconsistency. You can read the rest of my reply here.
All said and done, I reiterate that the royalties are there to be collected. So, the money will come although not completely as a recurring revenue. So, while the market panics, there will be a few who will collect shares for cheap. They know that when this money comes, the same market will scamper to lay their hands on this stock. That is when $17.50 will look real cheap. But for those who want to make some quicker fortunes from this stock, ask William Merritt and his team to BE CONSISTENTLY CONSISTENT.
Posts
