Coverage Initiated: InterDigital (IDCC) and Briggs & Stratton (BGG)  InterDigital Inc. (NASDAQ: IDCC) - Buy  Briggs & Stratton Corp. (NYSE: BGG) - Buy  Profile: InterDigital Inc.  While InterDigital Inc. (NASDAQ: IDCC) does a lot of things well, the most exciting aspect of this company is the fact that its stock is up 78% since October's low. We think more of the same success that got shares that far could be on the way for the foreseeable future. Thus, we're issuing a buy rating on IDCC.     Company Name: InterDigital Inc.  Stock Symbol : IDCC Coverage Initiated: Jan. 21st, 2009 Current Price: $30.58 Avg. Volume (3 mo.): 744,376 52 Week Range: $16.20 - $28.98  Market Cap: $1.32 B  Rating: Buy  InterDigital is a developer of advanced digital wireless technologies. Their designs and know-how are utilized by every digital cellular phone in use today. The business model isn't just designing and building though - patent licensing is a core part of the company's operation.  InterDigital's latest technological introduction is dual mode baseband ASICs, but the company has a long history of innovations, and intends to develop many more as the wireless industry grows.  More importantly to us, the company's bottom line has been growing over the last year despite an enormously challenging environment.  The trailing twelve month P/E is 69.45, which seems on the high end of the scale even by technology stocks standards. However, part of that twelve month period includes a loss in the fourth quarter of 2007. Since then, we've seen three profitable quarters, with each bottom line being bigger than the last one. That's not even the compelling part though.  Analysts are looking for earnings of 60 cents per share once we hear 2008's final numbers. And with three of the year's four quarters already in, that outlook is actually pretty reasonable. On the other hand, 2009 is expected to look radically different than 2008... for the better. For 2009, those same analysts foresee InterDigital earning $1.76 per share. For a $30 stock, that translates into a projected P/E of 17.2. Moreover, based on 2008's year-to-date earnings trend, those estimates don't seem a bit off base.  What's not apparent in the forecasted numbers is still just as exciting as those numbers - analysts and institutions are just now waking up to this company.  Institutions only own about 37.9% of the company's shares so far, which means there's a significant room for institutional buying in the future. Accordingly, there are only four analytical firms currently following InterDigital. This leaves the door wide open for 'new' coverage, which could bring more buyers to the table. And, it's not exactly a secret that frustrated investors are pressing for some decent (i.e. profitable) stocks to own, having grown weary of the losses being taken by too many large caps.  Wednesday's bullish pop was the result of an upgrade from Hilliard Lyons. And, the Lyons upgrade was most likely based on Samsung's recent decision to pay InterDigital $400 million in royalty/licensing fees through 2012. That's a big chunk of change for a company that generated $224 million in revenue over the last twelve months.  If more firms like Hilliard jump on the bullish bandwagon (3 of the 4 opinions are only 'hold' opinions), we won't be surprised to see similar moves in the future.  Our only concern would be in stepping into a position immediately after the big upgrade-inspired move.  Since we'll be following the stock for quite some time, interested buyers may want to wait for a better entry level. You'll still be able to follow our ongoing, long-term review, as our coverage initiated today is long-term 'investor' coverage rather than a short-term trade suggestion.    Profile: Briggs & Stratton Corp.  There's a lot to be said for investing in the next big technological breakthrough. On the other hand, there's still a lot to be said for investing in tangible, old-school industries... particularly when one of those old-school companies is turning things around.     Company Name: Briggs & Stratton Corp.  Stock Symbol : BGG Coverage Initiated: Jan. 21st, 2009 Current Price: $15.55 Avg. Volume (3 mo.): 772,370 52 Week Range: $11.20 - $22.37  Market Cap: $797.8 M  Rating: Buy  Briggs & Stratton Corp. (NYSE: BGG) didn't have a great calendar 2008. Fiscal 2009 (ending in June) isn't likely to be a lot better. Yet, a realistic look at the future rather than the past indicates the stock may be undervalued. Our buy rating on this S&P 600 constituent is largely based on that turn-around premise.  Over the prior four quarters (calendar 2008), Briggs has earned 78 cents ... 75 cents of which was earned during the first quarter of the year. The toughest quarter was third quarter, during which the company lost 4 cents per share. That quarter, however, may have been the turning point. The company surprised analysts with fourth quarter's numbers, earning 6 cents per share instead of the estimated 3 cents.  That's not an earth-shattering figure, but it's not bad given the dire economic environment.  Looking forward, forecasters expect per-share earnings of 65 cents for the current quarter, and earnings of 21 cents during calendar Q2 (or fiscal Q4). If they're right, Briggs will have earned 87 cents for the fiscal year ending in June. That's certainly better than last fiscal year's total of 45 cents per share. It even tops the prior fiscal year's total of 70 cents. Better still, Briggs & Stratton followers are looking for EPS of $1.15 in fiscal 2010. A lot of numbers to sift through? No argument, so we'll boil things down to our opinion of those numbers... the turn-around effort doesn't just seem plausible - it seems as if it's already started. While no industry is truly recession-proof, small engines are quite recession-resistant. And, if the economy does indeed start to improve later in 2009 (which we think it will), then the company may be able to exceed those estimates. What doesn't immediately show up in the numbers may be the core reason for any turn-around - the introduction of a more efficient standby-generator system to be sold under theGeneral Electric (NYSE: GE) name.  Unexpected ice storms and a record-setting number of hurricanes have not only created demand for generators, but also exposed the need for more efficient generators. Weather trends aren't likely to change soon, nor is efficiency going to fall out of favor. Briggs & Stratton is on the profitable side of that equation. We're going to cover Briggs & Stratton as long as the company continues to make progress towards those higher earnings targets.