Rambus’ share price rose 7.4% today to close at $14.15 ending its three day, 30% losing streak. At $14.15 its share price better reflects the company’s new position given last week’s court rulings but I wouldn’t expect its stock to remain above $14 for long. As a colleague of mine pointed out, rebounds like this are common and is likely to last a day or two before sellers try to drive nervous long buyers out. If this happens there may an opportunity to profit from a small rise in share price back to the $14 – $15 range. Regardless, Rambus’ share price is unlikely to rise above $15 any time soon that is barring any positive litigation news.
Positive litigation news can come in two forms:
First, Rambus could announce that it has decided to appeal last week’s appellate court ruling. While possible, most analysts believe this is unlikely. If it did so, then a second hurdle would need to be cleared. The Supreme Court would need to decide on whether or not to hear the case.
Second, California’s Superior Court could provide a definitive start date to a separate antitrust lawsuit Rambus has brought against Hynix and Micron. This may boost share price slightly but once the trial is underway news from the trial will help investors better access the strength (or weakness) of Rambus’ share price.
CLICK HERE for full article.
Business Insider Emails & Alerts
Site highlights each day to your inbox.