Ophir Gottlieb | Jun 14, 2012 03:12AM ET
Rambus Inc. (RMBS) is an intellectual property and technology licensing company. It is engaged in the design, development and licensing of memory and logic interfaces, lighting and optoelectronics, and other technologies. The Company’s primary focus is the creation, design, development and licensing of patented innovations, technologies and architectures that are foundational to all digital electronics products and systems. Its patented innovations and technologies are provided to customers’ products, components and systems offered and used in semiconductors, computers, mobile applications, gaming and graphics, consumer electronics, lighting displays and general lighting.
This is a vol and stock price movement note in a company that was absolutely decimated in Nov of last year.
ANALYSIS
Let's start with the Charts Tab (twelve months), below. The top portion is the stock price, the bottom is the vol (IV30™ - red).
The long-running legal wars between Rambus and Micron Technology finally reached a verdict. After eight weeks of deliberations and high-level testimonies from industry giants Intel and Dell, a split jury arrived at a "not guilty" verdict and no damage awards.
The jury found that Rambus "did not meet its burden of proving its case against the two defendants," Micron and Hynix. This antitrust case could have resulted in a $4 billion damage award, to be automatically tripled under California law for a total of $12 billion. Instead, Rambus gets nothing.
Of course, this was just the Superior Court in San Francisco County and not the Supreme Court of the United States. Rambus is "reviewing our options for appeal," and I wouldn't be surprised to see one filed very soon. The amount of potential payouts makes this a make-or-break case for the memory patent wrangler. Having pursued this case for seven years already, Rambus isn't likely to just give up at this point.
A Huge Legal Ruling in the Tech Arena , written by Anders Bylund.
I've also highlighted the recent run up in RMBS stock from $4.21 to $5.43 (29%) since 5-18-2012.
On the vol side, I've highlighted the annual high in the implied of 200.18% on 9-22-2012, as well as the heightened level today. It's difficult to see the rise of late given the scale of the one year chart, so I've included the six month chart (vol only), below.
Let's turn to the Skew Tab.
SUMMARY
Finally, let's turn to the Options Tab, for completeness.
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