All, I believe sjratty posted 5 potential reasons for the trial delay. I'm a long term lurker (from RB and now IHub) and after some libation would like to propose a potential 6th reason for the delay. As we all know IDCC has historically (with the exception of the late '99 runup) been a very thinly traded equity. Since the fall, that has slowly begun to change with the daily avg volume now over 700k shares exchanging hands. More and more have elected to leverage their holding by purchasing call options. This is easily viewed by looking at the open interest on each option series. Now in a perfect world when one of us wants to purchase a call, ideally there is someone else willing to sell us a call on their holding. The
guy(s) on the floor responsible for maintaining all the order with respect to these activities is the Market Maker (MM). Typically (I believe) these people maintain their own 'inventory' of shares to promote this orderliness. If you want to buy a call(s) and there isn't a seller, then they still execute the transaction for you even though they may not have the 'inventory' in place to cover the transaction. The float on the shares of IDCC is small so this hasn't been a problem historically. Perhaps until now. The MM hasn't had to pay too much attention to IDCC proceedings until one day he looks out and sees a large open interest and realizes something is going on. Ideally, if the call strike is say 25 he'd like to accumulate shares below 25 for him to be able to unload at the proper time. With a trial date looming, volume increasing radically on per day share trading, he could suddenly find himself in a squeez situation. From this perspective, maybe, perhaps maybe, the reason for the trial delay is due to Wall Street. The Street is/has begun to recognize that this small outfit out of KOP just might be for real and perhaps they (the Street) need more time to get ready. I know this may sound far fetched, but I also know MM's are charged with keeping things moving in an orderly manner. And if they get squeezed, their firm (Wall Street) gets squeezed. Maybe they're behind this? If so, I would speculate we have a bottom for support somewhere as these guys will need to accumulate inventory. If prices remain somewhat firm, they could actually help promote price appreciation as they generate inventory over the next 3 months to cover all the open interest. I know we have the likes of DannyDetail and other brokers on this thread. What do you guys think? Mr. HeavyDuty's postulate = gross fiction (go back to your Bud Lites Mr. HeavyDuty PLEASE)? Or is HeavyDuty possbily on to something? Good luck to all. Been a long since late '99 and it'll take triple digits for someone to get my shares. Submerging back to deep lurking mode................
AI
