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16

4-Star Stocks Poised to Pop: InterDigital

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wireless technology developer InterDigital (Nasdaq: IDCC  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at InterDigital's business and see what CAPS investors are saying about the stock right now.

InterDigital facts

Headquarters (founded)

King of Prussia, Pa. (1972)

Market Cap

$1.33 billion

Industry

Communications equipment

TTM Revenue

$259.2 million

Management

President/CEO William Merritt (since 2005)
CFO Scott McQuilkin (since 2007)

Return on Equity (average, last three years)

23.1%

Cash/Debt

$216.6 million / $1.5 million

Other Highly Rated Communication Stocks

Verizon Communications (NYSE: VZ  )
AT&T (NYSE: T  )

CAPS members bullish on IDCC also bullish on:

Apple (Nasdaq: AAPL  )
Dolby Laboratories (NYSE: DLB  )

CAPS members bearish on IDCC also bearish on:

Ford Motor (NYSE: F  )
UBS (NYSE: UBS  )

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 978 of the 1,024 members who have rated InterDigital -- 95.5% -- believe the stock will outperform the S&P 500 going forward. These bulls include cut4dough and All-Star PinochleHead, who is ranked in the top 10% of our community.

Just last month, cut4dough singled out InterDigital as particularly perfect for this series: "I really think that this company is poised for greatness. With their patent portfolio, winning record in litigation of those patents, and the current acceptance and proliferation of 3+ G technologies, they should see tremendous upside."

In an earlier pitch, PinochleHead expands on the stock's patented potential:

Wireless communications are one of the few areas currently showing substantial growth, and [InterDigital] holds a slew of patents on circuitry that makes those communications possible. They just concluded legal actions and contracts that raise their presence from being in about 20% of the cell phones and 802.11 wireless devices on the planet to being in about 50% of them, and they could at some point be literally getting a little piece of change from the sale of every single one. THAT is an attractive growth prospect.

What do you think about InterDigital, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. InterDigital, Apple, and Dolby are Motley Fool Stock Advisor picks. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 11, 2009, at 12:37 PM, stevesurfing wrote:

    this COULD be a $40 BY THURSDAY. I've been long, leaping, and strait optioning this future giant for 2 1/2 years. Same judge, same actions from what it appears. Another $400 mil action? The bill is due.

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