InterDigital Inc (IDCC)

[postyle]

vg_future,

But they are killing the upward potential that the stock was showing. Hopefully they will give us something next week to munch on and forget the whole insider selling saga.

This was my point exactly.

I'm not going to speak for others, but for me, as a long-term investor who expects to see significant revenues based on 3G licensing and product revenues -- I don't get overly excited about short-term volatility.

If the stock is going to increase significantly, and sustain said increase, it's going to be based on earnings.

When options are given as compensation instead of salary (rather sometimes the top execs take these options to align their interest with the shareholders), disposing those options certainly says about what they think about the immediate future of the company...

That is incorrect. We can not make blanket statements about insider beliefs and certainly not with any certainty.

What good is compensation if the compensated party is not free to use/spend/divest/etc their compensation?

Why should an insider not be free to diversify, or make tax-planning and asset allocation decisions based on his personal portfolio? I will tell you that any financial advisor worth his own salt would recommend against having a highly concentrated portfolio (read: IDCC stock and options) especially when their future interests are already tied into the performance of said stock (read: they work for the company).

Clearly, there are issues at play that do not involve insider sentiment about the company - short or long term.

The juice is being sucked out of the news. Why should the street beleive in the potential of the news when the insiders seem to have doubts (hopefully I am wrong....please correct me if I am wrong).

I think it's a common reaction to see the sales and become disappointed. But if most people ask themselves why they are really invested in IDCC, they would probably discover it is not to ride the wave of short-term news announcements. But rather, they are invested in the company because they believe future revenues will increase.

Insider sales aren't going to influence future earnings...

...so the long-term stock performance will not be impacted by the sales in and of themselves.

Cheers.

postyle