Tax day. Any settlements will most likely be before the 15th. What better than writing off a 300 million loss for tax purposes.
Why not get it over with, take the loss on the taxes, move on since it will be a new fiscal year, and pay the piper.
I figure that between the parties remaining to go to trial, if each settles for between 175 and 250 million, Rambus can take in about 3/4 of a billion dollars, have the stock rise to about 100, give discounted royalty rates to the Amigos, and pay a 200 million dollar fine for the backdating of stock options, and call it a day.
I've tracked Rambus for 7 years. If this was about making smart business decisions and staying witin the spirit of law this would have been over years ago.
Micron CEO is the type to run MU to the brink of Bankruptcy thinking he can pull out at the last moment. Unless MU settles Samsung won't follow suit. Hynix wants to settle on IFX terms but wants an Industry wide settlement.
So why should MU CEO settle ? MU will run right up to JW deadline and reject any comprise. He isn't afraid on any lawsuit. This Saga will end when he is noplonger CEO.
Right now the Street makes lots of money on options they sell to emotion based investors.
Really I don't understand why 200 Mil penalty for option back- dating. I am not aware of any law to make option back-dating illegal. Any company can give their stock to its employees even free, as long as they account for it as wages. If I own RMBS and i have my star employee induced by APPL for example to leave, I can compensate him by either money or stock to keep him. It is a sound business decision. It good for RMBS and its employees and its stockholders. If that illegal sports franchise owners like Baseball and Football should be in jail for paying millions to Franchise players.
Actually the 200 million was a number I threw out for the settlement of the lawsuits if they wanted, it was not a penalty by the nasdaq or the feds. You are correct, the most they would have to do about the backdating of stock options is restate earnings from three and two years ago, which at this point is totally, totally, totally meaningless.
Every company in the world that has had the backdating of options scenario, there have been shareholder lawsuits, not that the shareholders will win, but the sue anyway.
The scenario is great, but the cutoff date for anything concerning taxes for 2006 and write offs is the last day of December 2006. Anything that happens after that is applicable for 2007 taxes filed April 2008.
Nothing has been done (resolved) in 2006, (nothing that I call recall) that would apply to April 15, 2007 taxes, so no tax breaks.
I hate taxes. I hate April 15th. But I do love the life-liberties that follow. And unless there is an exemption law that I'm not familiar with, then April 15, 2007 is a pro- non event for Rambus.
I'm hoping for earnings to at least be restated by then.
A corporation can determine their own tax year for IRS purposes....ie, they could run March to March or June to June, September to September or January to January.
If I was incorrect on that last message, it's because I didn't think this out first, and you can now all point and laugh at me. :) Honestly, it wasn't an intentional misrepresentation of fact. Just a stupid omission on my part.