InterDigital Inc (IDCC)

[blueskywaves]

This might be useful.

Using Fibonacci numbers, the key retracement points are 38.2%, 50.0% and 61.8%.

A retracement move of up to 38.2% from the most current high is considered a continuation of the current bullish trend.

A retracement move from 38.2% to 50.0% from the most current high represents genuine indecision.

A retracement move from 50.0% to 61.8% (the golden ratio) from the most current high indicates a change (bearish) from the current bullish trend.

Today's close of $14.80 represents a mere 24% retracement of the 52-week high of $19.50. I'd be more concerned if IDCC sinks to $12.05 or 38.2% off the most current high even though the current bullish trend would still be intact. To your credit, you did not allow yourself to be shaken out before the first retracement point despite the fact that you apparently came close to dipping below the average price of your shares. I'd thoroughly reevaluate my position if the stock sinks to the $9.75 to $12.05 range again or 38.2% to 50.0% off the most current 52-week high.

The KEY qualitative adjustment to be made with a story stock like IDCC, of course, is that much of the near-term catalysts for the stock are tied to patent litigation. And I submit that patent law is sufficiently complex and the value of good lawyering is sufficiently underappreciated that nobody really has a significant information edge over other market participants that will show up in the stock's trading pattern. This makes it difficult to read the daily trading behavior of this stock which, while certainly volatile, has actually outperformed all other wireless stocks in each of the last 2 years.

What is within our control is managing the genuine risks of this stock. Many people on this board, for example, have risk management technigues that have already generated good-sized returns in each of the last two years which make it easier to capitalize on the trading opportunities that will present itself in the remaining days before the proverbial eve of the trial.............and all the days thereafter.