I find it hard to believe that John Paulson is taking a nearly 10% stake in IDCC because he sees value in 3-5 years. I think that sometime this calendar year, we will see a bid for the company in the $45-$50 range from a private equity group. With 64% institutional ownership, a bid in this range would sail thru. The main problem this company has, as a publicly traded entity, is the TIME variable(something that I didn't see when I looked at their business plan). Merritt calls this problem a lumpiness in earnings, but what ever you call it, a credible DCF model is hard to come by. This company would benefit greatly by going private and getting its' act together. When they are able to monetize their patents in a more orderly fashion, then an IPO could be issued, that of course would be extremely profitable to the group that took them private. Seems all too logical, and maybe Paulson taking a sizeable position, is the indicator that something is up. JMO
| 