InterDigital Inc (IDCC)

[hock1]

I would say the shorts are no smarter than the longs. IMO, whoever is short knows the true value of IDCC. Consider this possible scenario:

Suppose you were an entity that knew IDCC, on a discounted cash flow basis, was worth multiples of the current market cap. Let's say 3 times the current value, or $3B (about $70 per share). With the ability to manipulate the stock with down-tick sales, short term naked selling and the abetting of certain market makers, you could keep the stock within a certain range, say $25.

When a major event happens, like Nokia caving or a major new relationship occurring, and it is no longer feasible to keep the pressure on, this entity then bids $50 for the company. They will be paying $2.1B (50 x 42m shares) plus $125M to cover ( 5m share at a $25 per shares "loss"). They can get the entire company for $2.25B.

At an offer of twice the current share price, poison pill or not, the board would not be able spurn an offer of a 100% premium.

Do I think this a possible explanation for the current pricing of the stock? Absolutely!