InterDigital Inc (IDCC)

[The Count]

Insider buying

The insider purchases were exercises of compensatory options awarded to management. The exercise prices are well below the current market price. The positive is that the recent buys were not sold. However, because of the significant difference in tax rates between capital gains and ordinary income, this buy may have a "sell" scheduled for a year from now.

Do your due diligence. A good place to start is
http://www.wirelessledger.com/
This website was constructed by someone who believes IDCC is a great stock to own, so be aware of that. The reason he believes it is due to his knowledge of the stock, which is presented on his website. There are links to his sources that you can follow to do your own research and come to your own conclusions.

I believe IDCC at these levels has an incredible risk/reward profile. This is a volatile, risky stock. It is not for the faint of heart. If IDCC is successful in 3G licensing this stock will soar. However, I would not view the insider option purchases as a major bullish signal for the short term. IMO, expected strong earnings on the 13th and hope for progress on arbitration after a hoped for denial of Nokia's motion on the 24th are what's moving the stock right now. If those things come to pass and there is evidence of some momentum towards getting licenses then the recent strength will continue. Positive resolution of the Nokia and Samsung arbitrations or the signing of a significant 3G license will cause the price to JUMP. If these things do not occur over the next few weeks, then I believe the price will remain in the teens until concrete progress on 2G or 3G, or we get within 3-4 months of the expected arbitration ruling.