Replies to post #74451 on InterDigital Inc (IDCC)

[Dave Davis]

As long as we are talking about 'what if' scenarios... here's a dumb question: If Merrit used the proceeds of his sale to buy calls, would that require a SEC disclosure?

[rmarchma]

My3sons re Merritt's sale and possibilities

I agree that hypothetically many things can happen, which could possibly trigger an insider sale. However do you have specific knowledge that Mr. Merritt is involved in a divorce proceeding and is in desperate need of cash? If not, I would think that your following scenario could be possible, but not probable:

..."Let's throw in one more what if scenario. And that is, if Merritt is in a matrimonial contestation (divorce) and part of the settlement of marital assets included his shares presently owned (community property), he would have to sell and fork over the monies to the wife. And their are no if's and' or butts about it. Stock going up, stock going down, good or bad news pending. Give the spouse their just due and move on.... So, as all can see there can be any number of hypothetical what if's that justify or sanction Merritt's sale."

Hypothetically let's suppose that your scenario or a similar one is correct, and that an unavoidable external event is forcing a need for immediate cash. But let's also hypothetically assume that Mr. Merritt knows that a big license contract is about to be finalized, and should cause a significant increase in the stock price. Could he not borrow the money on a short-term basis using IDCC stock as collateral, instead of selling the IDCC stock outright? Wouldn't you?

[Corp_Buyer]

What IF ...

Management BOUGHT 20K shares instead of selling 20K shares?

I think we would be in the green today, not red. Market value increased, not decreased.

MO,
Corp_Buyer