Spongetech Delivery Systems, Inc. (fka SPNGQ)

[fortuna6]

Star Scientific teaches a valuable lesson to all IP share investors

A couple of weeks ago TiVo showed us why a knowledge of patents and patent litigaiton can help you reap significant gains on stock markets. Earlier this week, Star Scientific showed us why you are always going to need nerves of steel to actually put your money whereyour mouth is.

TiVo's shares rose over 50% after a US district court ruling went its way. Star Scientific's shares are currently down over 70% following an adverse decision from another American district court. "Trading of Star Scientific options was brisk on Tuesday as investors awaited a decision in the patent case," the Reuters report also linked to above says. "In all, about 38,000 calls and 22,000 puts changed hands, three times the normal daily combined volume, according to option analytics firm Trade Alert." I just hope those involved in the trades did not part with too much money. If they did, they have taken one hell of a loss.

Savvy IP investors clearly have to pick their battles wisely. Those who got out of Star prior to Tuesday's decision will be congratulating themselves. But they now have another decison to make. This case is not over. Star has said that it wil be applying for a retrial. If it does not get one, the case will probably end up before the CAFC. Either way, is it worth buying the company's stock now in the hope that its litigation fortunes will improve? After all, if they do, the chances are that there will be a major surge in the share price. As I said, you need nerves of steel ...

http://www.iam-magazine.com/blog/Detail.aspx?g=6b2b49cc-86eb-452d-89c2-6b15096709d8