Loop is extremely pleased for the following reasons:
1. My research regarding the value of Nortel was exceeded by a half a billion dollars. I was hoping for 4 billion and got 4.5 billion. I reached these figures based on the testimony of personnel of major manufacturers regarding royalty 3g rates and PR's from Lte patent holders regarding their declared Lte rates (4g). It seemed clear to me that the big OEM's were setting rates at a much higher level in their cross-licensing deals while conspiring to squeeze out and low ball the NPE's for their contributions to the various standards bodies. Thus, they have been able to rock along preventing other large patent poor fledgling OEM's from competing. Now that 4g has allowed the computer/internet manufacturers, movie shops, television operators and others to reach wireless users on a competitive scale, the old guard OEM's were trying to block the entry. The way to combat these established is to acquire a patent portfolio sufficient to offset infringement claims and negotiate cross-licenses on a level playing field. My thesis panned out and the auction result clearly showed that the sector Frandlied themselves to the benefit of inventors in the wireless sector. New boys in town armed with an IPR portfolio such as IDCC can compete worry free. Therefore, the once perceived value of the IDCC portfolio received an immediate evaluation method created by the biggest players in the sector.
2. I was concerned that WM was underestimating the value of its Lte and I believe the Nortel auction served as a wakeup call for him and the board as evidenced by their actions in exploring strategic alternatives within a few weeks of the OK by the Canada bankruptcy judge.
3. I believe the Street will reach a new market cap evaluation beginning with a firesale breakup value which it is doing now and the value will continue to soar as the real breakup value is defined by the interest and actions of the OEM's competing in the wireless sector to provide services to the carriers and operators as they provide services limited only by imagination s of end users around the globe.
4. I believe previous pitfalls in monetizing have been filled in or at least bridged for IDCC to be very valuable as a buyout target or as an operating entity.
Why in the world would I not be the happiest I have ever been as a shareholder of IDCC?
MO
loop
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