IDCC share price movement
I don't practice TA, nor am I a market vet like many others, but I love the price action on IDCC since October. Before October, IDCC had traded below 14.50 for around two years, with the recent history being a channel between 9-13+. Then, for whatever reason, investors decided that IDCC a good buy at those levels and began accumulating. As we got to the top of the old channel and above, traders and shorters sold, anticipating another profitable ride back to single digits. When the stock continued to climb, there was a minor short squeeze, which pushed the stock briefly over 19. Since then it has retreated, however it has had solid support under $15 and has quickly bounced up every time. So what I see is a base in the 15-17+ range that will be our launch pad, which is about 50% better than the old one. It has shown solid support in this range, which should give comfort for new comers afraid to buy/hold a stock that has had a quick rise. I still anticipate the rise, but the pullback and subsequent continuation of the price rise will be at higher levels.
I kidded teecee when he called the rise gut wrenching because while I understand there will be volatility, when the volatility involves 10%-20% falls that still leave us higher then we've been in the last two years (excluding the recent run up), I can stomach that quite nicely. It was the months languishing in single digits that I found gut wrenching.
All the above being said, I would not be shocked to see the stock fall during a trial (if one occurs). I think many of the buyers anticipated a settlement and wanted to be on board when it happened. If the trial starts, then there is a big risk. While I like the risk reward ratio and want IDCC to get their due by being willing to go to trial if ERICY will not make a fair settlement, most investors are risk adverse. They don't want to risk their capital on something as unpredictable as a jury, so unless the trial is proceeding clearly in IDCC's favor, I would expect the price to drop during the proceedings. Many IDCC holders now have a profit and in light of the market over the past few years, may want to take it. The risk is having to buy back at a higher price, but many will prefer that risk to the risk of watching there profits disappear. So continue to follow the case and determine your risk tolerance level and invest accordingly. Me, I like what I'm seeing.
Thank you to the Dallas detectives for unselfishly spending your time and effort and then sharing it with thousands of unknown folks. True generosity.
AI
