As others have searched and seemed to have found..he's connected to funds and deep pockets...and is telling us that the manipulation will continue...I've seen it before..one or two in the MB of a stock..will announce that they have gone short..and almost immediately the stock will start falling...thus making them look like astute market readers...
<<...when the buyout comes the Market Makers will have to settle their shortages in cash.>>
BustedBrain, you are absolutely clueless with respect to the stock market.
The only "Market Makers" in IDCC are HFT's and I assure you that they are flat 99% of the time and always flat overnight. There is no such thing as settling a short stock position for cash. Short positions must be covered by purchasing shares and delivering them to the original lender. In the (unlikely) event of a buyout, all short positions would need to be covered prior to closing, but short sellers would be able to do so at prevailing prices during the time (most likely months) between an announcement and an eventual close.
I realize that you guys have lost a lot of money (at least on a mark to market basis) and that you are feeling a bit desperate; but posting nonsensical notions of how market mechanics work is just silly and counter-productive.
Yes and no, Info. It is true that news reading bots. will trigger trades that will move a stock dramatically in the first minute following the release of a story. I have observed this on several occassions in IDCC so far, and the one minute volume has been around 500k shares each time
That said, if a story came out that gave me conviction that there was real interest in a buyout of IDCC, I would be more than happy to pay up $10 to have that information in hand when I established my position. Many would be sellers at that moement to capture their "windfall," where as I am looking for clues with respect to the final outcome. Remember, I'm playing for RISK ADJUSTED return. I'm happy to leave the 50/50 stuff to the gamblers.
I was long INTG (I believe?) stock many years ago even before they changed the stock symbol to IDCC. It was always frustrating to see how the company and its patent portfolio was not respected by the patent users or the street in general at that time. Things have gotten much better on both fronts but still not where they should be.
I too am curious to see how the anticipated auction event process finally plays out but I am not willing to risk any position in IDCC at this time, especially with the general market volatility that currently exists. The easy trading has already occurred in IDCC. I prefer to remain on the sidelines but continue to observe at this time.
There is alot of change going on with companies such as RIMM, HPQ, GOOG, YHOO, NFLX, T(AT&T), VZ(Verizon), S(Sprint) right now to name a few. Tech and telecom are going through some major changes and I feel it best to wait out and form a clearer picture on what the future will hold.
Oilman, it is obvious that Lind thinks an investment in InterDigital in the mid-$40s is a terrible mistake because he has been hired to think so.
Ditto, Infosource and countless other bashers who never posted on this board prior to the events of July. There is a huge short interest in this stock and when the buyout comes the Market Makers will have to settle their shortages in cash.
Any shares that the bashers can shake loose and which the MMs can buy on the cheap will save them between $55 and $75 dollars per share in cash in case a deal comes through.
That's why we have such a brand new (and VERY negative) group of posters on this board who know absolutely nothing about IDCC and never posted a word about it in the five previous years.
see edited correction below from previous post.
oilman, I dont think Lind is bearish on IDCC as a company in general, only on the anticipated auction event outcome that is expected by most on this board.
My response to your six points...
2) Currently unknown.
3) IDCC was trading in the range $40-$50+ in the six months prior to the summer market tumble.
4) Analysts are forecasting earning growth next year.
5) The NAZ is now recovering in line with normal historical seasonal trading patterns. I expect that to continue into 2012 unless Europe blows up.
6) Agree. Obviously, the growing uncertainly has led many traders to bail out. However, this could turn on a dime with any positive developments.
Lind, Good summary analysis. Thank You.
I will say the average investor has no chance against any anticipated news leaks. The smart money traders use computer algos with rules that monitor all news feed sources and look for key words. Once the news leaks hit the wires the computer algos react accordingly. It does not mean the computer algos are correct all of the time. They react to key words and thus have no reasoning abilities. My point is we have very little chance to take advantage of news leaks either positive or negative when they are anticipated such as with IDCC. When news leaks are not expected, we have a higher chance but still not at a level playing field with computer algos which are used by smart money traders.
For the record I am not short or long IDCC via stock or options and I have never been short IDCC stock or options.
Maybe I'm getting some of those IDs mixed up. I've been off the HUN board for long stretches when I'm out of the stock. However, many posters are quite often accused of having multiple IDs when in fact they don't. On another board, some accuse four of us of being the same person because we are extremely bearish on the stock. It's quite humorous. I've had only one ID my entire time on Yahoo boards.
You didn't answer my question about the current IDCC valuation. I find it compelling in the $40's. Why are you still so bearish at this lower level?