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Thanks for adding the lovely grace note of poetry, enriching a happy moment for the board.
My favorite line of the article: ""This was a Rambus victory across the board and an even better result than I expected," said Cohen, who owns 500 shares of Rambus."
Rambus Wins Patent Victory
By Alexei Oreskovic
TheStreet.com Staff Reporter
4/24/2006 1:13 PM EDT
Rambus (RMBS:Nasdaq - commentary - research - Cramer's Take) won a major court victory Monday when a jury found that South Korea's Hynix Semiconductor infringed on the company's patents.
A federal court jury in San Jose, Calif., found that Hynix, the world's No. 2 computer memory maker, infringed on all 10 patents at issue, and awarded Rambus $307 million, according to Pacific American Securities analyst Michael Cohen, who has been attending the trial for the past month.
"This was a Rambus victory across the board and an even better result than I expected," said Cohen, who owns 500 shares of Rambus.
Shares of Rambus, which dropped sharply last week in anticipation of a verdict, were recently halted.
And the biggest thank you to Threejack and Docrew!
Any thoughts on the amount of damages awarded and the effect on Rambus stock price? (P.S. What a HUGE relief to have a positive verdict!)
Perceptions about the trial testimony from the Yahoo board....
Why Rambus should win
by: carrera_from_avn (M/LA)
I am an attorney, but I am not a patent attorney. This second fact in my view does not materially affect my ability to soundly judge what has transpired recently because (1) the body of patent law is small, accessible and easily understandable; and (2) I am a trial lawyer. I am candidly biased towards Rambus and to what is "right" due to what I have observed, both the justice and injustice of it, yet I am often biased in my work based upon the same considerations and am still called upon to objectively evaluate the merits of cases. I have reviewed every transcript of the proceedings before Judge Whyte, including the trial, as well as attended a number of the days of trial. Against this backdrop, I offer the following personal opinion - Rambus should win because:
Mark Horowitz and Mike Farmwald invented something fundamental and revolutionary in common usage throughout the world, including in products sold by Hynix. Their testimony was elegantly simple, refreshingly honest, and deadly to Hynix. In particular, Professor Horowitz engaged the jury as if in a dinner conversation or a masters seminar and I felt as if he opened himself up like a book, said "read me and judge for yourself." On cross-examination, this non-lawyer made Furniss look directionless and entirely uncertain in his position. As with many of my experiences in this trial, this was a valuable lesson to me about how even in our cynically viewed justice system, the sharpest of trial lawyers cannot always overpower intelligent, forthright truthfulness. In other words, it is hard to trap someone in a truth.
The battle of experts was enlightening both for me as a practicioner as well as, I believe, for the jury. For Rambus, Murphy appeared willing to discuss his opinion both with Stone AS WELL AS with Furniss and to have his opinion tested. For Hynix, Taylor appeared arrogant and, frankly, paid for. He seemed unwilling to engage in any kind of meaningful dialogue with Rambus' attorneys, and I believe this was not lost on the jury. Fundamentally, I did not find Mr. Taylor's opinion credible that there was a fatal flaw in EACH and EVERY one of these claims missed by the patent examiners. Further, the jury instructions make it clear that Hynix's products infringe two claims. As for the damages experts, Professor Teece is clearly qualified and I found his opinion well reasoned. As for Mr. Weinstein, he simply could not wait to get off the stand. Mr. Stone said it best, to paraphrase, "Hynix called Mr. Weinstein for no purpose at all."
The Hynix employee witnesses hurt Hynix as much as helped them, and the flip-flopping of testimony either on the stand or by way of video deposition playbacks really underscored the weakness of the seemingly manufactured position being advocated, especially as to reasonable royalty rates.
That leaves Graham Allen, Joel Karp, and Neil Steinberg. Mr. Allen's appearance completely backfired on Hynix. He established that Hynix infringed Mosaid's patents, Hynix initially fought this through litigation, and ended up paying Mosaid a great deal of money. Karp and Steinberg's testimony simply destroyed Hynix's case. I have no personal knowledge of the following, but I was left with the impression from the cross-exam that Hynix had spent most of its allocated time in depositions of Karp and Steinberg concentrating on now irrelevant areas of inquiry, and was not prepared to engage these gentlemen on core patent issues. I cannot explain the total failure of this exercise by Hynix of calling these gentlemen to the stand any other way. Again, I was left with the impression of truthfulness having observed their testimony and, to understate the matter, these guys just took Furnis apart.
Having gone through the transcripts again today, I just do not see how a jury could conclude it is "highly probable" Rambus' patents are invalid. I just don't see it. Accordingly, I look forward to visiting the "market manipulators" again shortly.
UPDATE 2-No verdict in Rambus case but shares plunge
Thu Apr 20, 2006 7:28 PM ET
(Updates with options activity, share price, details)
SAN FRANCISCO, April 20 (Reuters) - Rambus Inc. (RMBS.O: Quote, Profile, Research) said on Thursday there had been no verdict yet in its closely watched patent infringement case against South Korea's Hynix Semiconductor (000660.KS: Quote, Profile, Research).
"Currently, the jury is still deliberating," Rambus spokeswoman Linda Ashmore said at around noon in San Jose, where the case is being tried. The jury later adjourned for the day with no verdict.
Ashmore spoke shortly after Rambus' stock suddenly plunged as low as 20 percent in late-afternoon Nasdaq trading. The shares pared losses slightly to close down $8.10, or 17.4 percent, at $38.50 on Nasdaq.
"There have been all kinds of rumors that Rambus lost their court case. Nobody has confirmed that and so the stock is coming back," said William Lefkowitz, options strategist at brokerage firm vFinance Investments.
Rambus shares bounced back somewhat in extended trading, rising 6.1 percent to $40.85 on the Inet electronic exchange.
Rambus options activity has been active this week ahead of the company's earnings -- reported on Wednesday -- as well the anticipated outcome of the jury's verdict, traders said.
"Even after the earnings came out after the close on Wednesday which would normally dampen Rambus' options volatility, the demand for both puts and call remained very high due to the uncertainty surrounding the court case," said Scott Sheridan, co-founder of Chicago-based online brokerage thinkorswim.
A total of 151,897 calls and 91,528 puts changed hands in Rambus in the U.S. options market on Thursday, far above Wednesday's total of 65,370 contracts, according to market research firm Track Data.
"Rambus April option prices are whipping aggressively" as the stock sells off and then goes up, said Paul Foster, strategist at financial-data Web site theflyonthewall.com.
Earlier this week, some investors bought near-term options on speculation that a court decision would occur between now and the monthly expiration of April on Friday after the close, Lefkowitz said.
With the jury not expected to resume deliberations until Monday, traders said the uncertainty will probably spill over into next week.
The case, which went to trial a month ago after six years of legal wrangling, is being closely watched in the $20 billion-a-year market for computer memory chips known as DRAM, or dynamic random access memory.
Rambus shares have more than doubled this year on expectations that the jury will find that Hynix did infringe its patents. If so, the jury could order Hynix to pay hundreds of millions of dollars in damages.
The case is being tried in the U.S. District Court for Northern California in San Jose. (Additional reporting by Doris Frankel in Chicago)
Does anyone think that the longer it goes the more iffy the
result becomes........
Thanks for sharing the update from court.
Rambus says no verdict yet in Hynix case
Thu Apr 20, 2006 3:16 PM ET
SAN FRANCISCO, April 20 (Reuters) - Rambus Inc. (RMBS.O: Quote, Profile, Research) said on Thursday there had been no verdict yet in its patent infringement case against South Korea's Hynix Semiconductor (000660.KS: Quote, Profile, Research).
"Currently, the jury is still deliberating," said Rambus spokeswoman Linda Ashmore.
Ashmore spoke shortly after Rambus stock suddenly plunged as low as 20 percent in late-afternoon trading. The shares pared losses slightly to trade down about 15 percent at $39.70.
© Reuters 2006.
Any predictions on the likelihood of the jury rendering a verdict before Rambus's quarterly earnings call tomorrow? (I can't take too much more of this suspense!)
As if we didn't know....
Briefing.com
7:52AM Court nears verdict in Rambus vs. Hynix dispute - EETimes (RMBS) 43.67 : EETimes reports a decision in the long and bitter patent lawsuit by RMBS against Hynix Semiconductor is expected to be rendered in the near future, perhaps as early as next week, according to sources close to the case. A spokesman for the co said closing arguments in the case were aired in the U.S. District Court in San Jose Thursday. On Friday, the jury deliberated the case, but it did not render a verdict, according to the sources. Co officials indicated that a verdict could be rendered next week. Both the spokesman and John Ward, an attorney for Silicon Valley-based Greenburg Traurig familiar with the case, stated that a verdict might be delayed until early next week if the jury could not come to a decision Friday. The spokesman said the co was seeking up to $868 mln in damages from the South Korean memory chip supplier for infringing patents related to SDRAM, DDR, and DDR2 memory. The case was filed in 2000 when the co accused Hynix of infringing the memory patents, filed by the co's founders Mike Farmwald and Stanford University Professor Mark Horowitz in the early 1990s.
It will be difficult to relax completely this weekend....
In case anyone missed this...
High-flying Rambus shares sold
STOCK PRICE UP 160% THIS YEAR
By Jack Davis Mon, Apr. 10, 2006
Mercury News
David Mooring, a former president of Rambus and a current member of its board, pulled in $14.7 million in February and March by exercising options to buy and then sell the company's stock. In January he took in $8.5 million.
Rambus has initiated and defended lawsuits contending it owns inventions used in memory chips that store data in products such as computers and cell phones. Its six-year patent fight with memory chip makers is now being heard in a San Jose courtroom in a case against Hynix Semiconductor.
Mooring's transactions were made according to a trading plan he set up in November, two weeks after a federal judge in Virginia dismissed a lawsuit by Samsung Electronics over four Rambus patents, allowing Rambus to focus its legal strategy on cases in California.
Rambus shares are on fire this year, having risen more than 160 percent since the end of 2005. They touched a 52-week high of $42.90 Friday before closing at $42.41.
Mooring, a graduate of Cupertino High School and Santa Clara University, spent $18.4 million exercising options allowing him to buy 1.2 million shares at prices ranging from $4.86 to $15.67, and then sold 87 percent of the shares for $33.1 million at prices ranging from $30 to $33.64 each.
Rambus stock was the subject of a recent Heard On The Street column in the Wall Street Journal, which raised questions about its valuation. The company may receive hundreds of millions in legal settlements, which would be a nice addition to the company's balance sheet but skew its bottom line with a temporary boost.
The intended effect of its litigation efforts, which represented one-quarter of its operating expenses last year, would be new royalty revenue streams. In January, Sunnyvale chip maker Advanced Micro Devices said it would buy licenses from Rambus.
Among the 150 largest public companies in Silicon Valley, Rambus has the highest market-value-to-sales ratio, according to a Mercury News special report elsewhere in today's paper. Rambus ended Friday valued at $4.34 billion, 27 times its 2005 sales. That was almost nine times higher than the average valuation of the SV150 at the end of the first quarter.
RESIGNATIONS: In other Rambus news last month, the company's board of directors elected a new member only to have him resign before the month was over. Mark Pinto resigned two weeks after joining the board, citing conflicts with his job as a senior vice president at Applied Materials that weren't originally foreseen when Pinto was named, according to a company statement.
The company also lost its chief financial officer at the beginning of March. In February the company said in a statement that Robert Eulau, who joined Rambus from Hewlett-Packard in 2001, was quitting to ``pursue another opportunity.''
Since the beginning of the year Eulau made about $7 million exercising options to buy roughly 400,000 Rambus shares and then selling most of them, according to Thomson Financial. He left the company owning about 72,000 shares.
From Briefing.com:
9:39AM Rambus breaks higher out of its recent pullback above its March high of 40.22 (RMBS) 40.69 +.22 : The move is likely technical (breakout to new 52-week high), but we're checking around for any news as well.
Thanks to lolo. Loved this post. Absolutely classic.
From Briefing.com:
13:38 RMBS Rambus spikes over 0.35 on an increase in volume over the past few minutes (39.27 +0.55) -Technical-
RMBS downgraded from "Hold" to "Sell" by BWS Financial. Does anyone have access to their reasons?
From the Wall Street Journal online. Last paragraph refers to Rambus.
Judge Sanctions Gateway
For Destroying Evidence
By CHRISTOPHER LAWTON
March 31, 2006; Page A3
A federal judge in Utah harshly reprimanded Gateway Inc. for destroying or losing evidence "in bad faith" in a patent-infringement case brought by an inventor against the computer maker.
The plaintiff, Phillip M. Adams, a former International Business Machines Corp. engineer, filed the suit in 2002 after talks fell through with Gateway in 2001 over licensing his patented technologies that address a defect in circuitry used to control floppy-disk drives. Mr. Adams asserts in the lawsuit that Gateway violated a nondisclosure agreement signed between the parties, and that the company infringed on his patents. He later added allegations that Gateway lost or destroyed documents needed to help prove his case, which is scheduled to go to trial Monday.
U.S. District Judge Ted Stewart sided with Mr. Adams, in a ruling that was issued March 6 and unsealed March 22. He chastised Gateway for failing to disclose information that a magistrate judge had found central to the case. Although he found no "direct" evidence about Gateway's intentions, he cited "ample circumstantial evidence" that Gateway acted in bad faith.
The ruling cites a missing email from a supplier to a Gateway employee that contained Mr. Adams's software for detecting the defect.
"Based upon the entire record, this court concludes that the explanation is that it was destroyed in bad faith by Gateway," the judge wrote in a memorandum. He added that "the court finds that it is clear that for years Gateway did everything it could to avoid producing complete copies of all the relevant emails."
Judge Stewart stopped short of granting Mr. Adams's request to decide the entire case in his favor because of Gateway's actions. But he sanctioned the company, ordering it to pay Mr. Adams's attorney fees incurred in connection with the litigation over the alleged document destruction.
Gateway, which leveled its own allegations that Mr. Adams destroyed documents, admitted to errors in handling the evidence, but insisted that it didn't intentionally conceal information. The company said that upon learning of the problems, it acted promptly to comply with orders for document discovery in the case.
"Gateway continues to dispute the characterization of this discovery battle, and we will continue to defend ourselves vigorously in this case. Plaintiffs have chosen to focus all of their energy on creating discovery disputes, and we're pleased to finally have the court consider the merits of this case," John Spelich, a spokesman for Gateway, said in a prepared statement.
A partner with Howard Phillips & Andersen, the Salt Lake City firm that filed the lawsuit on Mr. Adams's behalf, declined to comment. Mr. Adams said the case has "been a long torturous trip," adding, "I am so looking forward to my day in court."
Patent battles have been dogging many high-technology companies lately. Research In Motion Ltd. of Waterloo, Ontario, recently agreed to pay $612.5 million in a settlement with Virginia-based patent holding company NTP Inc. Barring a settlement, RIM was threatened with an injunction that could have shut down its BlackBerry email devices.
The stakes aren't quite as high in this case. Mr. Adams is seeking $150 million in damages, plus attorneys' costs from Gateway. He has said that he received about $30 million from Hewlett-Packard Co. and other companies that have licensed the patents at issue in the case.
Allegations of document destruction in patent cases have also become relatively common. Rambus Inc., a Silicon Valley maker of technology used in memory chips, has faced charges that it improperly shredded a large volume of documents associated with patent cases it has filed against companies that include Hynix Semiconductor Inc. A federal judge in San Jose, Calif., recently ruled that Rambus had done nothing improper.
Thank you to smd1234 and garybuyit for helpful replies. I did see a gorgeous rainbow in Kinsale, which I am choosing to interpret as a good luck charm for Rambus.
Does anyone know the story behind Mark Pinto leaving the Rambus board? (Sorry if this has already been discussed here, but I just returned from Ireland.)
Delay announced for the PS3--also known as "The Cell"
Forbes.com
Stringer's Sony Delays PlayStation3 Launch To November
Parmy Olson, 03.15.06, 7:18 AM ET
London - Fashionably late? Any practiced attendee of the Academy Awards will tell you that the best time to glide across the red carpet is at the end of arrivals time, when the setting sun casts a favorable light on those pesky wrinkles and unsightly bulges. We may be grasping for straws here, but as the Sony PlayStation 3 now looks set for a late launch, perhaps the gaming console's entrance in the market this November, instead of this spring, will see a similarly sympathetic reception. Or Sir Howard Stringer can at least hope so.
On the face of it, the delay announced this morning looks to be a major setback for the chief executive of Sony (nyse: SNE - news - people ), whose goal has been to revive the company's consumer electronics division. While he now sits and waits for his legions of engineers to continue tinkering with the PS3's magical next-generation disk technology, arch gaming adversary Microsoft (nasdaq: MSFT - news - people ) with its Xbox 360 will keep chewing away at all that potential market share.
Japanese traders, however, reacted mildly to news of the delay and sent Sony's stock down a mild 1.8% this morning. They'd probably been expecting all this. From Wall Street to online gaming forums, the rumor mill had long gone past "whether" the PS3 would be delayed, to "how long" we would have to wait. (See: "Will PS3 Be Delayed?")
Analysts have also taken a tempered view. More important than the timing of the launch, Goldman Sachs forecaster Yuji Fujimori told The Associated Press, is the success of the new machine when it goes on sale, including pricing and game software lineup. A delay alone wasn't enough to determine how the PlayStation 3 business would fare, others opined.
The PS3--also known as "The Cell" for featuring a high speed microprocessor that is said to run rings around Intel's (nasdaq: INTC - news - people ) Pentium 4 chip--also has the upcoming Ninetendo Revolution to contend with. Sony's gaming compatriot has been mum on its own launch date, but who knows, perhaps the two consoles will be walking down that red carpet together.
AP
Premarket Movers: JetBlue Grounded
Friday March 10, 9:12 am ET
[Excerpt]
Rambus Inc. shares were also beaten down ahead of a patent infringement trial versus South Korea's Hynix Semiconductor slated to begin Monday and last up to three months.
A Wall Street Journal story Friday suggested buyers of the Los Altos, Calif.-based Rambus who were banking on a trial win and a subsequent windfall may not get the return they're looking for.
Shares were down 77 cents, or 2.5 percent, to $30.51 on INET, from their Nasdaq close at $31.28.
Cal, Best wishes for the procedure. I'm sure everyone on the Board here is rooting for you.
Here's the lawsuit that RideOnRambus mentioned. (In case any Micron stockholders here want to join the class -- HA!)
Pess Release Source: Schiffrin & Barroway, LLP
Shareholder Class Action Filed Against Micron Technology Inc. by the Law Firm of Schiffrin & Barroway, LLP
Friday March 3, 5:45 pm ET
RADNOR, Pa., March 3 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Idaho on behalf of all securities purchasers of Micron Technology Inc. (NYSE: MU - News; "Micron" or the "Company") between February 24, 2001 and February 13, 2003, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice, your rights, or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges Micron, Wilbur G. Stover, Jr., Steven R. Appleton, and Michael W. Sadler with violations of the Securities Exchange Act of 1934. Micron engages in the manufacture and marketing of semiconductor devices worldwide. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that Micron engaged in illegal anti-competitive behavior to suppress and eliminate competition by fixing the prices of DRAM sold to OEMs in violation of Section 1 of the Sherman Antitrust Act; (2) that Micron's financial results throughout the Class Period were materially inflated as a direct result of the price- fixing conspiracy due to the Company's illegal behavior of price-fixing; and (3) that the Company's financial projections during the Class Period lacked a reasonable basis because they were issued while the Company involved itself in an illegal price-fixing scheme.
While the Company engaged in an illegal price-fixing scheme, Company insiders sold 132,000 shares for gross proceeds of $4,536,000. Additionally, during the Class Period, the Company issued more than $632 million worth of debt and sold over $480 million worth of warrants and completed numerous stock-for-stock acquisitions.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than April 25, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Darren J. Check, Esquire
Richard A. Maniskas, Esquire
280 King of Prussia Road
Radnor, PA 19087
1-800-299-7706 (toll-free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com
From Briefing.com:
12:47PM Rambus stages a mid-day breakout above recent highs at 32.28
Does anyone care to venture a brief analysis of Micron's tactics in filing this latest suit?
Hit 30 briefly.... <eom>
Rambus to expand design activity in India
K.C. Krishnadas
EE Times
(02/14/2006 11:39 AM EST)
BANGALORE, India — Rambus Inc. plans to double its head count in India this year, to more than 100, and said it will continue to use Indian companies for outsourced logic design and verification, layout and other engineering tasks.
"We are well ahead of the market in, and will remain focused on, high-speed I/O in memory," said Rambus CEO Harold Hughes. He added that the company is looking to hire staff for mixed-signal and digital design and development in Bangalore.
A planned program of joint research with engineering institutes in India is also expected to begin this year.
Rambus (Los Altos, Calif.) has grown its team in India through the acquisition of the development center here from GDA Technologies Inc., said Samir Patel, vice president of engineering.
Is this thread completely dead?
Robert K. Eulau Joins Alien Technology(R) As EVP & Chief Financial Officer
Business Wire
02/13/2006
8:01 am
Does anyone know the story behind the CEO Douglas McIntyre's resignation?
Threejack,
Thank you for your welcome, and thank you for this intelligent, informative board.
Lizvestor
Top May Be Near for Semis
By Richard Suttmeier
RealMoney.com Contributor
2/9/2006 10:12 AM EST
URL: http://www.thestreet.com/tech/semis/10267369.html
Momentum remains strong for some semiconductor stocks, but time appears to be running out amid the evolving correction on the Nasdaq.
Advanced Micro Devices (AMD:NYSE) , Broadcom (BRCM:Nasdaq) and Lam Research (LRCX:Nasdaq) still have vigor, while negative divergences are beginning to show up for Marvell Technology (MRVL:Nasdaq) , National Semiconductor (NSM:NYSE) and Rambus (RMBS:Nasdaq) .
ValuEngine has a sell rating on Rambus and a hold on the other chipmakers. All are more than 20% overvalued, with weekly chart profiles that show overbought momentum. National Semi is showing the first signs of losing momentum. How long can these stocks hold up with the weekly chart profile for the Nasdaq showing declining momentum? It's just a matter of time if the Nasdaq ends the week below its five-week modified moving average at 2262.
Focus on the Philadelphia Semiconductor Sector Index (SOX) for the first signs of a directional change in these stocks.
The SOX outperformed the Nasdaq in January, rising 12.4% vs. the Nasdaq's 4.6%. The SOX's leadership is important for the entire market this year, but the SOX appears vulnerable after peaking at 559.60 on Jan. 27, just shy of the January 2004 high of 560.68.
In April 2005, I turned bullish on technology and forecast a rally led by the chipmakers. My model showed semiconductors were 32.9% undervalued then; the industry ended January just 3.1% undervalued -- quite a turnaround, and a serious warning for caution now.
The SOX has been resilient, as its weekly chart profile shows overbought momentum, and the five-week MMA is 514.00. This gives the long-term investor the chance to pair back positions in overvalued chip stocks before this industry peaks. A weekly close below my monthly pivot of 529.84 would be the first warning that a top is in place for the SOX. If the weekly chart profile shifts to negative, the risk is to my quarterly pivot at 488.82, with my quarterly support far below at 394.12.
The Stronger Chipmakers
These companies may move higher, but beware of the risks.
Advanced Micro Devices set a high of $42.42 on Feb. 2, but my model shows risk to monthly pivots of $38.49 and $35.01. A weekly close below the five-week MMA of $34.17 (and rising each week) indicates risk to my annual value level of $28.61 by the end of the year.
After setting a high of $71.87 on Feb. 8, my model shows there is a chance of Broadcom slipping to my monthly pivots of $62.52 and $60.89. A weekly close below the five-week MMA of $57.57 (and rising each week) indicates risk to my quarterly value level of $48.62.
Lam Research set a high of $47.50 on Feb. 2, but my model shows risk to the five-week MMA of $40.92 (which is rising each way). My annual value level is $40.07.
Chipmakers Slowing Down
New highs seem unlikely in the following stocks:
Marvell Technology set a high of $73.67 on Jan. 27. My model shows risk to my monthly pivot of $64.90. A weekly close below the five-week MMA of $62.33 (and rising each week) indicates risk to my quarterly value level of $43.82.
After setting a high of $29.55 on Jan. 27, my focus for National Semiconductor is on its performance relative to the five-week MMA of $27.26. A weekly close below it would signal risk to my annual value level of $20.51. It is trading below my monthly risky levels of $29.96 and $30.72.
Rambus set a high of $36.15 on Jan. 17; if it closes the week below its five-week MMA of $25.39, there is risk to my semiannual and quarterly value levels of $24.13 and $21.35, respectively.
--------------------------------------------------------------------------------
Richard Suttmeier is president of Global Market Consultants, Ltd., chief market strategist for Joseph Stevens & Co., a full service brokerage firm located in Lower Manhattan, and the author of TheStreet.com Technology Report newsletter. At the time of publication, he had no positions in any of the securities mentioned in this column, but holdings can change at any time. Early in his career, Suttmeier became the first U.S. Treasury bond trader at Bache. He later began the government bond division at L. F. Rothschild. Suttmeier went on to form Global Market Consultants as an independent third-party research provider, producing reports covering the technicals of the U.S. capital markets. He also has been U.S. Treasury strategist for Smith Barney and chief financial strategist for William R. Hough. Suttmeier holds a bachelor's degree from the Georgia Institute of Technology and a master's degree from Polytechnic University. Under no circumstances does the information in this commentary represent a recommendation to buy or sell stocks. While he cannot provide investment advice or recommendations, he invites you to send your feedback -- click here to send him an email.
Rambus Reshuffle Can't Trump Turnaround
By Alexei Oreskovic
TheStreet.com Staff Reporter
2/8/2006 10:49 AM EST
URL: http://www.thestreet.com/pom/pombos/10267084.html
There's a certain element of flattery when an executive's departure causes investors to sell off the company's stock. After all, if the news sends the stock up, it doesn't say much about the Street's perception of that executive.
So Rambus (RMBS:Nasdaq) CFO Robert K. Eulau might have taken it as a backhanded compliment when the company's shares initially dropped more than 5% in extended trading Tuesday, after the surprise announcement that he was jumping ship.
Truth be told, say analysts, Rambus is one company where the CFO's exit has about as little bearing on the company as the departure of the head IT systems administrator.
"Where I think Bob is a great executive, I think he's in a role that's replaceable," said Pacific American Securities Director of Research Michael Cohen, who personally owns shares of Rambus.
Since Rambus is an engineering and legal-driven company, says Cohen, its fate is much more closely tied to executives such as General Counsel John Danforth, who has "been driving shareholder value at Rambus probably more than any other employee."
According to Rambus, Eulau will resign from Rambus on March 2 to pursue "another opportunity."
"Bob has made a significant contribution to Rambus for nearly five years, and we are saddened to see him depart, but wish him well in his new opportunity," said Rambus CEO Harold Hughes in a statement accompanying the announcement.
A company spokesperson said Rambus has begun the search for a successor to Eulau, looking both internally and externally. The company's finances would appear to be in good hands in the short term, as Hughes temporarily puts on the CFO hat: He formerly served as CFO at Intel (INTC:Nasdaq) for part of his 23-year stint with the Santa Clara, Calif. chipmaker.
But the timing of Eulau's exit certainly raises some questions. Rambus announced its quarterly earnings only a few weeks earlier, and that's the usual venue for announcing such a departure.
And the departure is particularly puzzling given that Rambus' prospects have been looking better in recent months.
In January, the company scored an important legal victory, putting it in good stead as it nears its March trial with Hynix Semiconductor. Rambus also recently announced a $75 million licensing deal with Advanced Micro Devices (AMD:NYSE) , which some industry watchers believe could be the first taste of a significant new revenue stream for the company.
Investors have warmed to the story, more than doubling the stock's value since Nov. 1.
But for Eulau, a chance to get in on the ground floor of the next big thing may have been too good to pass up.
According to several analysts, Eulau is moving to a pre-IPO semiconductor company, although which company is still not known. Eulau joined Rambus in 2001, so it's likely that his stock options and share grants were much less attractive than those of executives who came on board before Rambus went public.
"I don't think it's a reason to worry that the story of Rambus is cracked," says WR Hambrecht analyst Daniel Amir, who doesn't have a stake in the company. "The fact that it's coming right around this timing is unfortunate. But the company will do well with or without Bob."
See comments re Rambus in the article. Sigh....
AP
Aftermarket Movers: Cisco Leads Techs Up
Tuesday February 7, 5:17 pm ET
Cisco Systems Results Lead Technology Stocks Higher
NEW YORK (AP) -- Cisco Systems Inc. led technology issues higher in after-hours electronic trading Tuesday, after the communications equipment giant posted quarterly results that topped Wall Street predictions.
The San Jose, Calif.-based maker of routers used to connect computers to the Internet posted profit -- excluding stock compensation and other costs -- that was a penny ahead of Wall Street projections. Sales rose 9.3 percent from last year, and matched analyst expectations.
Investors rushed into shares of Cisco, considered a bellwether for the entire tech sector. Some 8.9 million shares exchanged hands in after-hours trading when investors sent the stock up 74 cents, or 4.1 percent, to $18.83 on the INET exchange, from their close at $18.09 on the Nasdaq.
Tech leaders such as Intel Corp., Sun Microsystems Inc., Dell Inc., Microsoft Corp., Yahoo Inc., and Google Inc. all moved higher in after-hours trading.
One Silicon Valley stock that didn't have such luck was Rambus Inc., which announced after the market close its chief financial officer will resign.
The Los Altos, Calif.-based chip designer said CFO Robert Eulau will step down March 2 to pursue another unnamed opportunity. Chief Executive Harold Hughes will take over the job temporarily. Shares fell $1.15, or 4 percent, to $27. after closing at $28.71 on the Nasdaq.
Another Nasdaq-listed stock making waves after the closing bell was Encore Wire Corp. Shares leapt $5.17, or 18 percent, to $34.10 on the INET after closing at $28.93.
The maker of copper wire and cable used by the construction industry reported fourth-quarter earnings per share of $1.50 -- while analysts expected only 35 cents per share. Margins expanded "significantly" during the fourth quarter, the company said.
Also gaining was Ikanos Communications Inc., which designs high-speed programmable chips. The Fremont, Calif.-based company reported fourth-quarter profit beat Wall Street estimates by a penny on a 55 percent jump in sales from a year earlier. Investors sent shares up 88 cents, or 4.4 percent, to $20.90 in after-hours trading on the INET, from their Nasdaq close of $20.02.
Icos Corp., a drug maker that co-markets the impotence treatment drug with Eli Lilly & Co., reported it swung to a fourth-quarter profit. However, results weren't enough to beat Wall Street projections -- and shares were sent lower by 99 cents, or 4 percent, to $23.75 after the bell, from their Nasdaq close at $24.74.
Press Release Source: Rambus Inc.
Rambus Chief Scientist Receives IEEE Donald O. Pederson Award in Solid-State Circuits
Monday February 6, 4:18 pm ET
LOS ALTOS, Calif.--(BUSINESS WIRE)--Feb. 6, 2006--Rambus Inc. (Nasdaq:RMBS - News), one of the world's premier technology licensing companies specializing in high-speed chip interfaces, today announced that its chief scientist, Dr. Mark Horowitz, has been recognized for his technical contribution by the IEEE Solid-State Circuits Society. In a ceremony today at the 2006 International Solid-State Circuits Conference (ISSSC), Dr. Horowitz received the Donald O. Pederson Award in Solid-State Circuits, for his pioneering contributions to the design of high-performance digital integrated circuits and systems.
The IEEE Donald O. Pederson Award in Solid-State Circuits was established in 1987 to honor an individual, or team of up to three, for outstanding contributions to solid-state circuits as exemplified by benefit to society, enhancement of technology, and professional leadership.
"Mark's contributions to memory architecture and interface design are foundational in virtually all digital electronic devices on the market today," said Harold Hughes, president and chief executive officer at Rambus. "We are greatly honored to have Mark lead our talented research staff as they push the boundaries of interface and system design bringing tremendous value to our customers and the market at large."
Dr. Horowitz is especially well-known for his pioneering research on high-speed, low-power CMOS data link interfaces for applications such as memory access in high-performance computing and signal-processing systems. Mark is currently a member of the IEEE Society and was named an IEEE Fellow in 2000. In 1990 he co-founded Rambus along with Dr. Mike Farmwald and was named chief scientist reporting to CEO Harold Hughes in May 2005.
About Rambus Inc.
Rambus is one of the world's premier technology licensing companies specializing in the invention and design of high-speed chip interfaces. Since its founding in 1990, the company's patented innovations, breakthrough technologies and renowned integration expertise have helped industry-leading chip and system companies bring superior products to market. Rambus' technology and products solve customers' most complex chip and system-level interface challenges enabling unprecedented performance in computing, communications and consumer electronics applications. Rambus licenses both its world-class patent portfolio as well as its family of leadership and industry-standard interface products. Headquartered in Los Altos, California, Rambus has regional offices in Chapel Hill, North Carolina; Bangalore, India; Taipei, Taiwan; and Tokyo, Japan. Additional information is available at www.rambus.com. Additional information is available at www.rambus.com.
About IEEE
IEEE is the world's largest technical professional society. Through its 365,000 members in 150 countries, the society is a leading authority on a wide variety of areas ranging from aerospace systems, computers and telecommunications to biomedical engineering, electric power and consumer electronics. Dedicated to the advancement of technology, the IEEE publishes 30 percent of the world's literature in the electrical and electronics engineering and computer science fields, and has developed more than 900 active industry standards. The organization also sponsors or co-sponsors more than 300 international technical conferences each year. Additional information is available at www.ieee.org.
Contact:
Rambus Public Relations
Linda Ashmore, 650-947-5411
lashmore@rambus.com
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Source: Rambus Inc.