InterDigital (IDCC) possess a considerable amount of intellectual property. When Motorola Mobility (MMI) was bought by Google (GOOG) , there developed considerable excitement in the market about patents. InterDigital put itself up for sale. InterDigital wanted to strike while the iron was hot. Iron has cooled and InterDigital has not yet struck.
InterDigital has been actively shopping itself. Absence of a deal is not because of effort. For strategic reasons , Google overpaid for the patents. It appears that InterDigital is not finding a strategic buyer willing to pay a price at par with recent patent sales.
A strategic buyer may be able to pay more than $70 per share for InterDigital. A financial buyer may not be able to justify a price higher than $40.
InterDigital stock is in the hands of speculators who are hoping for a strategic buyer. Most long term investors sold InterDigital stock to the speculators . If there is no deal, there are no buyers near the current stock price. Should speculators who bought the stock looking for a quick profit decide to rush out of the stock , InterDigital can easily drop to $28-34 or lower.
Investors holding the stock may consider using the ZYX Trade Management Guidelines to manage the position or write to support@theAroraReport.com
