I spent the entire day skipping classes and pressing F5 to refresh the message board. At 6pm or so, the court clerk came out with a copy of the decision. The lawyer friend went to the last page to see the verdict and told us. We had 1 1/2 minutes to trade the stock before it was halted. I bought a lot of shares (for a semi-broke student anyway). The day after, the stock went from something like $15 to $30.
I made $20k in 1 day. Easiest money I made in my life (aside from selling my site to Microsoft). I was hooked from that point on.
I don't know the law(s), but isn't that pushing on insider trading?
I had the same thought, but the verdict was public knowledge at that point.
Azurik, thank you for the useful information. Your communication efforst are much appreciated. May I ask you a couple questions?
1) If Intel was involved as a middle party, why is Intel not suing Micron and Hynix for inappropriate use of the investement money? It seems odd that Intel is not upset at the loss of these funds. Maybe Rambus should be suing Intel instead?
2) Is that 2% royalty amount an accurate number? It seems too low for a company championing a new technology. That does not seem to be enough motivation for illegal collusion to bankrupt the technology.
My apologies if my questions show ignorance on the subject.
2. RDRAM royalty rates were 1.5%. It is more than what memory companies are use to paying, which is 0%. It adds up quickly when you consider that RDRAM and it's evolutions were going to trickle down to almost every electronic that had RAM in it. They were charging 3.5% on DDR-RAM and SDRAM since it incorporates some Rambus tech in it, and a higher rate to encourage adoption of RDRAM instead.
Take for instance, the PlayStation 3, which has XDR-RAM in it, also owned by Rambus. Sony chose this and both Samsung and Elpida makes it for them, paying Rambus 1.5% for each chip. Each PlayStation 3 uses 2 XDR chips @ 1.5% each and 1 XDR controller @ 3%. 1.5% x 2 + 3% = 6%. There's been 25 million PS3s sold so far, so Rambus has roughly made $2 on each unit, or $50 million dollars on PS3 alone. That's not chump change.
The entire DRAM market is $9 billion dollars right now, which means Rambus would have receive $370 million this year on RAM alone (before support, licensing fees, etc.) are added. It's a huge market that keeps on growing (computer DRAM, notebook RAM, mobile RAM).
Rambus is calculating had they not been driven out of RDRAM, they would have made $4 billion dollars in the "but if for" world. The State of California automatically trembles that amount for damages.
#1 - it's "treble", not "tremble".
#2 - 2 chips @ 1.5% != 3%. 2 chips @ 1.5% = 1.5% of the cost of TWO chips. (Mathematically: (A + A) * 0.015 = (2A) * 0.015. For example, if a chip costs $7.50, then 15 * 0.015 = 0.225. The way you're wording it is 15 * 0.03 = 0.45. Also taking into account the controller cost is different from the cost per ram chip, you simply can't simplify it to 6% of the total cost. They're two distinct values that need to be calculated separately.
#1 - it's "treble", not "tremble".
#2 - 2 chips @ 1.5% != 3%. 2 chips @ 1.5% = 1.5% of the cost of TWO chips. (Mathematically: (A + A) * 0.015 = (2A) * 0.015. For example, if a chip costs $7.50, then 15 * 0.015 = 0.225. The way you're wording it is 15 * 0.03 = 0.45. Also taking into account the controller cost is different from the cost per ram chip, you simply can't simplify it to 6% of the total cost. They're two distinct values that need to be calculated separately.
In for 10 contracts nov $20 calls for RMBS
lose lunch money or go on vacation
I just realized I had some more money in one of my IRA accounts, so I bought 500 more RMBS shares at $13.70 and 5 more Sept $10 puts for protection.
I'm traveling to L.A. to visit my best friend later this week followed immediately to Ukraine for 1 1/2 weeks... hope the action starts before I go!
Can I ask you all for your thoughts on THQ? Very, very cheap right now. I dont understand why, but looking at its price history, and looking at some of the games coming out, I cant imagine it wont go back up quite a bit.
Any feedback?
Awesome. I'd love to go to Ukraine.
Game publishers ebb and flow with the release of titles. You'll usually only see real gains (or losses) around the release of a AAA blockbuster title, which THQ honestly hasn't had in a while. And honestly, there's really nothing on the horizon that would be considered "earth-shattering" for THQ either. Blockbuster titles are usually released once every 3 to 5 years for a typical game publisher, a bit sooner (~2 years) if they have a franchise to milk, which THQ does not have.
About the only real jump you'd see in any near timeframe would be because of an acquisition by one of the bigger fish in the pond at this point in time... something that THQ has been resisting to date.
Gold down to $1600. People still holding?
Recent article that I don't have an opinion on:
http://www.cnbc.com/id/44667027
Berkshire buy back announced.
Thanks for the input. Maybe I'll stay away from it. I was kinda thinking though that Metro and Warhammer were big enough franchises to shoot it up.
Considering the economic uncertainty in the world and the potential for another brush with default, it is shocking (to say the least) that precious metals have fallen so far and so fast:
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Silver down almost 40% in 3 trading days? Perhaps too much speculation was going on and a bubble occured.
I've looked but cant seem to find any updates - is the jury still deliberating in the Rambus case?
Slow and steady gains on it today but I would expect a much wilder swing if the verdict came through.
a few people in court providing "live" updates and posting on http://www.investorvillage.com ... still no verdict. i'm sure you'll see a much bigger change when the verdict comes out.
my question is why do people think they will have a verdict so early ... they've only been deliberating for 2-3days.
Normally, the longer a verdict takes, the less likely of a positive outcome with egregious damages. Basic translation: People hope for an open and shut slam-dunk case because it leads to a black and white decision that usually means major harm was done therefore high damages will be awarded.
a few people in court providing "live" updates and posting on http://www.investorvillage.com ... still no verdict. i'm sure you'll see a much bigger change when the verdict comes out.
my question is why do people think they will have a verdict so early ... they've only been deliberating for 2-3days.
does Azurik have a boy at the court room to report back to him right away this time around?
I actually thought the opposite (for some odd reason), I thought the quicker the decision, the easier it was for them to throw the case out and decide for the defendants.
But the folks on the IV board seem to think something will be out this afternoon .. dunno if it's just wishful thinking or not or whether this was why there was a run up this morning.