InterDigital Inc (IDCC)

[sonetirot]

Street Chatter: Able Laboratories, Immucor, and InterDigital Communications
Jocelynn Drake ([e-mail]) Give Feedback
4/6/2005 11:01 AM ET

InterDigital Communications

InterDigital Communications (IDCC: sentiment, chart, options) develops and licenses circuitry designs, software, and other technology using CDMA and TDMA wireless telecommunications standards. The firm is also developing microchips and software to enable voice and data transmissions in mobile phones and portable computing devices. The security has slid lower since the end of 2004 under pressure from its 10-day and 20-day moving averages. The stock has also dropped below its 10-week trendline, but continues to cling to support at the 15 level. This region has buoyed the security on a number of occasions during the past two years.

Sentiment is somewhat mixed toward the technology company. Options speculators are still leaning toward the bulls' camp, as calls easily outnumber puts in the front three months of options. The security's SOIR of 0.40 is also lower than two-thirds of the readings taken during the past year. On the other hand, short interest inched two percent higher in March to 2.55 million shares, or five percent of the equity's total float. The stock also carries a healthy short-interest ratio of 5.62, providing ample fuel for a short-covering rally. Wall Street is even hesitant to jump on this stock, with four of the five analysts following IDCC rating it a "hold."


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