Chris Kraeuter reports for TheStreet.com that on second look, the Rambus – Infineon settlement does not look so good for Rambus.
“While the stock is now respectably up 19% from Friday's close of $13.12, it's a fairly paltry gain considering the expectations of what a nine-figure settlement might do for the company's stock.”
“Analyst Erach Desai with American Technology Research told clients Tuesday that Rambus gave Infineon too good a deal -- one that will have ramifications going forward. Amtech doesn't do investment banking.”
"While Rambus may be unwilling to offer a similar bargain to Micron or Hynix, the reality is that the Infineon settlement will serve as a blueprint for any court to determine what a 'fair' royalty rate Rambus can charge," Desai says.”
No report as to the basis of Desai’s belief that the settlement will be a blueprint. Any Donkey wonders if Desai has consulted qualified lawyers, conducted his own research or peered into his crystal ball?
“Analyst Daniel Amir with WR Hambrecht says Rambus would be unlikely to settle with Hynix before completion of a trial that's about to start next month in San Jose, Calif. He said Rambus' position in the Hynix trial is stronger than its position in the Infineon retrial, which Rambus lost at the month's start.”
Later in the article, Desai implied that Rambus’ problems are just being citing his belief that an 18-month licensing contract for its XDR interface with Sony and Toshiba for the PlayStation3 has expired. "This is likely the biggest reason for the sequential downtick in revenue and may prove to be just the tip of the iceberg."
No mention that XDR is already in production by Samsung and ahead of the roadmap for Sony’s PS-3. Any Donkey wonders why Desai failed to note that XDR is in production and the profitable "iceberg" that should create.
Read TheStreet.com article here.
Hat tip to FinzToRite of the Pinehurst Thread for the link.
“While the stock is now respectably up 19% from Friday's close of $13.12, it's a fairly paltry gain considering the expectations of what a nine-figure settlement might do for the company's stock.”
“Analyst Erach Desai with American Technology Research told clients Tuesday that Rambus gave Infineon too good a deal -- one that will have ramifications going forward. Amtech doesn't do investment banking.”
"While Rambus may be unwilling to offer a similar bargain to Micron or Hynix, the reality is that the Infineon settlement will serve as a blueprint for any court to determine what a 'fair' royalty rate Rambus can charge," Desai says.”
No report as to the basis of Desai’s belief that the settlement will be a blueprint. Any Donkey wonders if Desai has consulted qualified lawyers, conducted his own research or peered into his crystal ball?
“Analyst Daniel Amir with WR Hambrecht says Rambus would be unlikely to settle with Hynix before completion of a trial that's about to start next month in San Jose, Calif. He said Rambus' position in the Hynix trial is stronger than its position in the Infineon retrial, which Rambus lost at the month's start.”
Later in the article, Desai implied that Rambus’ problems are just being citing his belief that an 18-month licensing contract for its XDR interface with Sony and Toshiba for the PlayStation3 has expired. "This is likely the biggest reason for the sequential downtick in revenue and may prove to be just the tip of the iceberg."
No mention that XDR is already in production by Samsung and ahead of the roadmap for Sony’s PS-3. Any Donkey wonders why Desai failed to note that XDR is in production and the profitable "iceberg" that should create.
Read TheStreet.com article here.
Hat tip to FinzToRite of the Pinehurst Thread for the link.
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