Fixing of hearing date will increase the excitement
News about possible fixing of the Markman hearing date has taken the stock up by 11% in one day. The volumes were also good, and next week's follow up buying will indicate the possible impact of the news. There is no press release on the company's website yet, and as soon as that comes, there may be more excitement. As mentioned in the SA article, the plaintiff company stocks have increased exponentially after announcement of the Markman hearing date. The fixing of the date will reduce the uncertainty about the future of the lawsuit. This would imply that the case will go on through the usual legal process. This also indicates that, prima-facie, the claims do have substance. It may prompt some of defendants to consider going for a settlement. So far they may have been waiting for the court ruling. The fact that the claims are against casino gaming giants like CZR, MGM, PENN, SGMS etc. indicates that the potential is huge. The expected value of the claims, at the lower end of the range, is stated to be $300 million. At the higher end it is $4.5 billion. This again is game changing for a company of this size. Based on the past history related to other plaintiff companies involved in patent infringement lawsuits, the SA article has predicted huge gains for the stock. Though the levels mentioned ($15!!) may appear to be very high, growth like this has happened in small companies recently. So from a trading perspective, traders may bet on the long side, keeping the risks in mind. If the press release confirms the news, the stock may take off pretty fast. The recent developments related to daily fantasy sports and skill-based video games wagering have also helped build positive sentiments about the stock.