InterDigital's (IDCC) Implementing Smart Changes to Drive Growth - Barron's
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Get Alerts IDCC Hot Sheet
Price: $253.91 -1.24%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
EPS Growth %: -83.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.9%
EPS Growth %: -83.4%
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Shares of InterDigital (Nasdaq: IDCC) are trading higher today, following a positive mention in Barron's.
The report recommends that investors take a serious look at the tech company, which has its wireless products in about 80% of the largest mobile-service providers.
Barron's notes that shares are cheap, trading at about 15x FY10 EPS estimates, compared to 18.2x for Alcatel-Lucent's (NYSE: ALU) FY11 estimates and 18.1x for QUALCOMM (Nasdaq: QCOM).
IDCC has piles of cash, which they've just begun paying out to investors in the form of dividends. The company also is employing a new strategy: getting paid per handset as opposed to a lump sum.
The new format could be lucrative for IDCC, as some have estimates of unit sales up 15% to 1.5 billion in FY11.
Technology that IDCC employs is best described as a data "air-traffic controller." It tries to spread bandwidth across several different spectrum in order to transfer data at its best efficiency.
Barron's believes that the stock could easily jump another 15% higher from their Friday close of $50.11. The stock is currently about 4% better early today.
The report recommends that investors take a serious look at the tech company, which has its wireless products in about 80% of the largest mobile-service providers.
Barron's notes that shares are cheap, trading at about 15x FY10 EPS estimates, compared to 18.2x for Alcatel-Lucent's (NYSE: ALU) FY11 estimates and 18.1x for QUALCOMM (Nasdaq: QCOM).
IDCC has piles of cash, which they've just begun paying out to investors in the form of dividends. The company also is employing a new strategy: getting paid per handset as opposed to a lump sum.
The new format could be lucrative for IDCC, as some have estimates of unit sales up 15% to 1.5 billion in FY11.
Technology that IDCC employs is best described as a data "air-traffic controller." It tries to spread bandwidth across several different spectrum in order to transfer data at its best efficiency.
Barron's believes that the stock could easily jump another 15% higher from their Friday close of $50.11. The stock is currently about 4% better early today.
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