InterDigital Inc (IDCC)

[littleinvestor]

IDCC TOP Story on OptionMonster:

"InterDigital (IDCC) showed a different, more bullish picture. Average daily call turnover during the month of February was 2,700 contacts, and today, 10,900 calls changed hands.

April 20 calls traded more than 3,700 contracts, and all but 30 of these calls were purchased on the offer.

Underlying IDCC shares had traded more than 830,000 times by late in the session, above the average daily share turnover of 670,000 over the past 3-months.

This morning’s Wall Street Journal said IDCC might be a big winner in the cellular-phone industry's move to multimedia phones. One way IDCC wins is through the courts. IDCC owns an array of patents on wireless technology that it contends are essential to making the high-speed-data phones that let people watch videos and surf the Web, the WSJ says. Apple (AAPL) and RIM (RIMM) license IDCC patents, but giants Nokia (NOK) and Samsung have resisted.

From this month through November, the US ITC is set to issue a series of opinions and rulings on whether NOK and Samsung have infringed IDCC’s patents. If IDCC wins, and a court decision in the UK augurs in its favor, NOK and Samsung would come under new pressure to sign licensing deals. Fees from those deals might double IDCC’s revenues over the next few years, the story says.

The stock is just off its 52-week low of $16.47, and less than half the 52-week high of $35.25. With all the action and potential upside, investors might consider creating a bull call spread."

By: Medora Lee