I guess the shorts, with probably more than 12mm shares sold, would be screwed.
The stock is already deeply oversold relative to a worse case outcome -- IFiX settlement for everyone. Once a stock is this oversold, there is no telling what happens on whatever news. Over time, however, the overselling will correct.
Now that Payne taking the case and issuing a SJ against Rambus seems more than fully priced in, what would happen if Payne passes to California and Samsung settles? Could be we overshoot on the upside for a change.
Maybe just wishful thinking, but something the shorts should consider.
ok Lucky. Just remember that many people lightened up in anticipation of Payne already and short interest already at 12mm probably rose. Over the short-term I do not know if it goes to 10.45 or 20.90, but at this point I do not think the risk is symmetric. There is much more upside than downside.
If contrary to your expectations, the stock starts to rise over the next few days, is there a point you say you were wrong and get back in or will you be out forever in that case?