ParkerVision -9.9%; SA author offers critical view of May 1 hearing


After reading a transcript of the proceedings, SA author Alpha Exposure believes ParkerVision (PRKR -9.9%) attorney Joshua Budwin "made potentially critical errors" during a May 1 court hearing related to the company's Qualcomm suit.

The author notes Qualcomm argues the fact the baseband signal from its processors is generated before a capacitor and not after is "fatal to ParkerVision's infringement case," and thinks the judge presiding over the case (Judge Dalton) "appears to agree."

Alpha Exposure adds Dalton was "unsatisfied" with Budwin's defense against Qualcomm's argument, and that Qualcomm lawyer Stephen Neal stated the company is developing 28nm chips that don't infringe ParkerVision's IP. The author thinks a 28nm RF transceiver announced last November (set to ship in commercial devices in early 2015) fits the bill.

Previous: ParkerVision higher after new Qualcomm suit, court rulings

Comments (1)
  • SA Eli Hoffmann
    , contributor
    Comments (1004) | Send Message
     
    Interesting counter-argument from IP Hawk that I'll cross post here (http://seekingalpha.co...):

     

    <<My opinion is that PRKR risk/reward position is not very good from either side. There will be even more time for the final judgment at district court and the eventual appeal at the federal level. Risk capital is going to be tied up heading into complicated rulings and opinions with a lot of time in between.

     

    You also wrote a similar analysis and recommendation to short back in October with shares in the high 2s. I would hope that you covered shortly after your article otherwise a short position in the high 2s or 3s would be severely under-performing with some hefty losses.

     

    Interesting analysis but I would be careful drawing conclusions from these hearings. The PRKR contingent seems to be fairly strong and could pump this right back up to the $5/6 range in a blink. I would imagine the wagons are already circling to put together a counter argument.

     

    IMO, shorting IP investments based on valuations has not worked very well. They trade on sentiment and perception. You need a real fundamental event to be negative or perceived to be very negative to break the investment. Until that time comes the overvalued / undervalued argument is tough to explain. There will always be someone to buy the dream of big rewards until the window is completely closed.

     

    No position in PRKR. Long QCOM.

     

    BOL>>
    19 May 2014, 12:49 PM Reply Like
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