InterDigital Inc (IDCC)

[jai]

IDCC is my largest holding. Also, many friends, relatives and acquaintances in IDCC based on my advise. My broker bought shares in his personal account based on my forever touting IDCC to him. Quite frankly he may have purchased shares just to shut me up about this pick.

When he called me last week while I was away and asked me about the recent wave of insider selling I had no defence. It stinks plain and simple.

When the head of licensing and the Chief Operating Officer sell large positions it sends a very bad signal to those who wish to invest. Howards comments "More economic discussions then ever" seem down right wrong. If all these discussions are going on why would the head of licensing choose to sell now?

This is not the first time that insider selling acted as a rally killer. Tom Carpenter outlined this last year during his down grade.

I was happier last year when they sold at $28 at least one can say the stock was fully valued and they made a smart move.

6-Jun-03 GOLDBERG, HOWARD E.
Chief Executive Officer 7,500 Sale at $26.53 - $28.6 per share. $207,0002
6-Jun-03 FAGAN, RICHARD J.
Chief Financial Officer 15,000 Sale at $28.10 - $28.38 per share. $424,0002
6-Jun-03 LEMMO, MARK A.
Executive Vice President 20,000 Sale at $28.60 per share. $572,000

But the company states that the stock is undervalued, executes a share buy back then key executives sell. The fact is that these shares that the company is buying back will go back to the very same executives in the form of RSU's with the company forking out cash to pay their taxes.

For all those investors in love with this company just remember, these executives are no better or worse than the executives at other companies. They look out for themselves first then shareholders somewhere down the line when it is serves them to.

Bottomline, this is about greed pure and simple. These guys sell because they know that their shares will be replaced unlike our shares which can't be unless we put more hard earned cash into this company.