Interdigital Communication(IDCC) Message Board

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Technology Stocks : Interdigital Communication(IDCC)

IDCC 309.06

+0.8%

Jan 9 3:59 PM EST

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To: Jon K. who wrote (2711)	8/3/1999 12:28:00 AM
From: Daniel Joo	Read Replies (3) of 5195

Jon, I treat option investing like stocks - I spread my risk over several positions - let the winners ride and cut my losses quickly - we have a trading plan for each position - I stick with the plan and have a goal of being right on about 60% of the positions - it's been very profitable for me so far - in addition, we've developed a screening tool to help us in our investment decisions. Too often, J6P option investors treat options like gambling where they get into 1 or 2 positions at a time without a plan and bet big - they win big a couple of times and keep suffering heavy losses when they are wrong - they usually lose in the long run in that scenario. Or they win big a couple of times early on and invest in too many positions at once without a plan resulting in more losses. IDC is trading at very low valuation with a strong B/S. Although they've lost some key customers, Nokia has validated IDC's new technology by entering into an agreement with IDC (see Raging Bull thread for some great info on IDC's technologies). The cash infusion from Nokia combined with the revenue stream from the many current patents in addition to a patent infringement case against ERICY that could generate a lot of cash if they win should be enough to catapult this company to the next level. Short Interest was quite high with a short ratio of about 12.5 when we entered into the position. With earnings coming out, any positive news should drive this stock price higher quickly. Word of caution, the recent volume could just be short covering in anticipation of earnings and/or news. If you look at the stock price action before last quarter's earnings release you will see a similar trend. The stock price dropped significantly after earnings was released. However, this price movement is associated with heavy call option buying across all strike prices and timeframes which leads me to believe something is up. With this recent price movement, rumors have popped up about Cisco being a possible suitor. If nothing happens soon, the stock price will drop back down hard. Dan

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