InterDigital Inc (IDCC)

[jai]

How about an amateur one?

IDCC average volume per day is
Avg Vol (3m): 953,090

The 10 day sell off from post earnings numbers of $17.74 to a daily low of $15.00 happened with only one day of above average volume.

18-May-04 15.65 16.17 15.56 16.02 526,200 16.02
17-May-04 15.89 15.92 15.00 15.65 643,700 15.65
14-May-04 16.60 16.70 15.92 15.99 408,600 15.99
13-May-04 16.38 16.75 16.20 16.59 1,126,400 16.59
12-May-04 16.75 16.78 15.95 16.36 728,200 16.36
11-May-04 16.35 16.93 16.34 16.69 859,200 16.69
10-May-04 17.38 17.40 15.92 16.26 909,000 16.26
7-May-04 17.00 17.41 17.00 17.03 706,100 17.03
6-May-04 17.52 17.67 17.00 17.06 568,200 17.06
5-May-04 17.50 17.74 17.39 17.41 771,000 17.41

NASDAQ sell off from high of 1967 to low of 1865

18-May-04 1,892.29 1,903.39 1,890.95 1,897.82 14,351,000 1,897
17-May-04 1,881.06 1,887.74 1,865.40 1,876.64 15,288,900 1,876
14-May-04 1,922.47 1,927.25 1,897.57 1,904.25 15,263,600 1,904
13-May-04 1,918.63 1,937.87 1,914.10 1,926.03 15,586,200 1,926
12-May-04 1,924.32 1,927.23 1,878.77 1,925.59 18,877,800 1,925
11-May-04 1,909.50 1,931.48 1,909.50 1,931.35 16,452,200 1,931
10-May-04 1,904.73 1,907.98 1,880.32 1,896.07 18,956,300 1,896
7-May-04 1,931.86 1,957.24 1,917.96 1,917.96 16,370,900 1,917
6-May-04 1,945.87 1,949.55 1,923.30 1,937.74 17,507,700 1,937
5-May-04 1,954.99 1,967.33 1,948.51 1,957.26 15,866,600 1,957

There was no fundamental reason for IDCC's selloff in fact the fundamentals improved. So IDCC should have gone up in a decent market but because the sky was falling specifically in high beta stocks IDCC was sold off with the rest of the NASDAQ.

Now we have a rubber band effect of prices returning to a stable point.