InterDigital Inc (IDCC)

[The Count]

Institutional ownership

I guess I see things differently than most here. I like to see institutional ownership low, not high. When an institition does not have a position in us they are a potential buyer. When they have a small position the are a potential buyer or seller. When they have a large position they are a potential seller as they need to stay diversified.

If we are talking about the future I want institutions to be buyers because that will drive the price up, but when we are talking about the past I like to hear that institutions have sold because that lessens the potential selling pressure in the future.

The only reasons I can see to think otherwise is if think institutions are strong hands that will hold the stock long term, effectively reducing the float (no way IMO), or you believe that the institutions know better than the rest of the market, so their actions signal the future direction of the stock. I don't happen to believe that either. If I did I'd be in managed accounts like our friend Brad (Danny Detail) and just throw speculative money at IDCC.

Frank