Capstone Investments is out defending Rambus (NASDAQ:RMBS) this morning:
Samsung Attorney’s health merits continuance. Yesterday, during hearing in RMBS’s upcoming Anti-Trust trial, Judge Kramer pushed trial date from Sept. 28th to Jan. 11th, 2010. Trial date was moved due to “grave condition” of Samsung attorney. Judge Kramer felt that beginning trial in ’10 was likely the best choice as he didn’t believe he could provide Samsung proper time to bring new attorney(s) up to speed, while also avoiding any rollover into holiday season. Given timing of prior Sept. 28th date, any delay in starting trial would likely pose issues in jury selection as holiday period would likely interfere. Other than timing the firm sees little impact from yesterday’s ruling. Capstone believes RMBS’s case remains intact, and sees no change in legal position
ITC case provides potential near-term catalyst. While RMBS’s Anti-Trust trial has been the primary focus of investors, its proceedings vs. NVDA in ITC could offer potential near-term catalyst. Based on recent ITC Markman ruling, which Capstone views as a landslide for RMBS, we believe NVDA will likely need to settle with RMBS or risk potential injunction, and injunction of its customers (HPQ, MicroStar, Asustek and others). Hearing before Judge Essex is currently scheduled around Oct. 12th. In firm's opinion, any settlement would likely occur prior to hearing. While not equal in dollar size to upcoming Anti-Trust proceedings, they believe NVDA settlement could equal ~$1B+
Reiterate Strong BUY – Delay likely has little impact in final outcome. Firm believes investors have a “shoot first” mentality with regards to RMBS legal developments. While likely prudent, they believe after hour sell-off assumes a change in RMBS legal position or eventual Anti-Trust outcome. They see neither and believe investors should use weakness as buying opportunity.
Notablecalls: Talking to a senior NCN (Notable Calls Network) member who bought RMBS around $16.50 this morning. He says RMBS will bounce. When he speaks, I listen.
FYI
Samsung Attorney’s health merits continuance. Yesterday, during hearing in RMBS’s upcoming Anti-Trust trial, Judge Kramer pushed trial date from Sept. 28th to Jan. 11th, 2010. Trial date was moved due to “grave condition” of Samsung attorney. Judge Kramer felt that beginning trial in ’10 was likely the best choice as he didn’t believe he could provide Samsung proper time to bring new attorney(s) up to speed, while also avoiding any rollover into holiday season. Given timing of prior Sept. 28th date, any delay in starting trial would likely pose issues in jury selection as holiday period would likely interfere. Other than timing the firm sees little impact from yesterday’s ruling. Capstone believes RMBS’s case remains intact, and sees no change in legal position
ITC case provides potential near-term catalyst. While RMBS’s Anti-Trust trial has been the primary focus of investors, its proceedings vs. NVDA in ITC could offer potential near-term catalyst. Based on recent ITC Markman ruling, which Capstone views as a landslide for RMBS, we believe NVDA will likely need to settle with RMBS or risk potential injunction, and injunction of its customers (HPQ, MicroStar, Asustek and others). Hearing before Judge Essex is currently scheduled around Oct. 12th. In firm's opinion, any settlement would likely occur prior to hearing. While not equal in dollar size to upcoming Anti-Trust proceedings, they believe NVDA settlement could equal ~$1B+
Reiterate Strong BUY – Delay likely has little impact in final outcome. Firm believes investors have a “shoot first” mentality with regards to RMBS legal developments. While likely prudent, they believe after hour sell-off assumes a change in RMBS legal position or eventual Anti-Trust outcome. They see neither and believe investors should use weakness as buying opportunity.
Notablecalls: Talking to a senior NCN (Notable Calls Network) member who bought RMBS around $16.50 this morning. He says RMBS will bounce. When he speaks, I listen.
FYI
He sold his RMBS..cool 3/4 pts
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