Here's What This 250% Gainer Is Buying
By Selena Maranjian | More Articles
February 21, 2012 |
Comments (1)
Two stocks that Paulson reduced his stake in over the past quarter are InterDigital (Nasdaq: IDCC ) and Transocean (NYSE: RIG )
Many people have been avoiding Transocean because of its uncertain fate regarding its involvement in the Gulf oil spill. It also posted very disappointing earnings in November, sending shares down sharply. (Of course, some see its lowered price as representing a bargain, especially considering its order backlog.) Meanwhile, wireless connectivity specialist InterDigital has disillusioned some investors with its not-too-strong investments in research and development and its interest in selling itself off. Other investors see it as undervalued, with rapid growth and fat profit margins.
COMMENTS:
On February 21, 2012, at 2:06 PM, jonluxy wrote:
Actually most longs liked the shareholder friendly consideration of the BOD to investigate whether or not selling the company in part or whole would result in a higher share price. The selling in whole did not result in strong enough interest however they continue to negotitate with 3 separate entities to sell non-core patents (each deal in the 100 to 200 million$ range and expected to close this year). OK and R&D? They are all about R&D and collaboration! All they do is add value to OEMS by taking on the risk of R&D spending and making it available to them at a cheaper cost usually on a pay as you go basis. They have the 3rd largest 4G patent portfolio next to Nokia and Ericsson and won about 9 % of the essential 4G patents. With something like 18000 patents in the wireless sector I can't assume they have not invested heavily in R&D. That's OK - Some people only held in hopes for a total buyout. They were disappointed but management never guaranteed a sale. The review process resulted in a great outcome. All the major OEMS are now familiar with IDCC's IP, and IDCC knows what each party is interested in. This intelligence will no doubt result in more streamlined negotiations for future patent sales, and license deals. I can be more selective than Mr. Paulson managing only my own account. FYI - My return is actually higher than his and only since 2006, and that is even with my current unrealized loss in IDCC - and guess what, I did not lighten up my position this year, but am holding for the long term. I have a price target of 70 for Jan 2013 wherein if met I will sell some of the position for a nice profit and continue to hold the rest, else continue to hold. I expect a triple digit price range emerging over the next 2 years due to expectations and demand for 4G LTE technology and the increasing need from providers to manage their resources and provide that bandwidth.
http://www.fool.com/investing/general/2012/02/21/heres-what-this-250-gainer-is-buying.aspx
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