DOW JONES NEWSWIRES
August 23, 2006 10:35 a.m.
By Donna Fuscaldo
Of DOW JONES NEWSWIRES
Shares of memory-technology company Rambus Inc. (RMBS) surged in trading Wednesday after a judge in its patent-infringement case against South Korea's Hynix Semiconductor Corp. (000660.SE) stayed the final phase of the six-year long court battle.
On Tuesday, U.S. District Judge Ronald Whyte in San Jose said the final trial in the patent-infringement case will be delayed until Feb. 2, 2007, or until the U.S. Federal Trade Commission levies a penalty against Rambus in a separate antitrust case.
Rambus was found guilty by the FTC of monopolistic tactics. According to Whyte, the FTC remedy will have industry-wide implications and could establish a reasonable rate for royalties for Rambus' patent-protected products.
Hamed Khorsand, an analyst at BWS Financial, which rates Rambus a buy, said that, going into Tuesday's ruling, many had expected a negative outcome and sold off shares of Rambus as a result. He said the stay of the final phase of the trial shows that either way Hynix will have to pay royalty rates to Rambus, which is driving the stock higher Wednesday.
Recently, shares of Rambus were trading up 17%, or $1.92, to $13.12, on heavy volume of 12.5 million shares. Average daily volume is 7 million shares.
Ever-volatile Rambus has seen its stock decline more than 70% since setting a high of $46.99 in April.
The company has been embroiled in a series of lawsuits against some of the largest memory makers for years claiming patent infringement.
-By Donna Fuscaldo, Dow Jones Newswires; 704-371-4263; firstname.lastname@example.org
I agree that RMBS is a good buy but with the markets about to tank even further tomorrow on weaker than expected NEW home sales, you would be an idiot to buy at this price point.
Wait for the inevitable pullback @ 12.5 to get in.
One analyst from BWS Financial rates RMBS a buy and everyone goes gaga. When did Hamed Khorsand rate RMBS a buy. I do not see anything that says he rated it a buy today.
DJ did not rate it a buy. Just some guy who you would not invite to dinner did.
And who put out the positive report in the first place? RMBS did!
The fox is watching the chicken coop.
I hope it keeps running up until a real analyst puts the brakes on the spin.
If you are long, I would strongly suggest that you buy PUTS to hedge your bet, considering that you seem to betting on the opinion of one guy and a report issued by the company itself!
"They" are gaming the options market.
Sucking in a lot of long calls today.
When they are loaded they will drive the price down and collape the long options prices.
You might just want to short the stock instead.