InterDigital (IDCC) – Sometimes, Lucky > Good

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Sometimes in investing, you just get lucky.

Six days ago, I wrote about a window of investment opportunity to go long patent holding companies due to failed patent reform legislation (source). Today, one of the 5 companies I highlighted as “interesting” (a word I use to convey particularly strong conviction), is a top gainer in the market, up ~20%. The reason?

A 10 year licensing deal with Samsung covering 3G, 4G and future wireless products. This deal boosts quarterly recurring revenue from $56MM – which the Company expected in May (source) – to $76MM (source). That’s $80MM / year in additional recurring revenue from Samsung. IDCC’s new recurring revenue estimate is now just north of $300MM / year.

Even at these levels, IDCC continues to be “interesting”.

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