Netlist, Inc. (NASDAQ: NLST) is having an overwehlmingly strong start to the trading session this morning, and for good reason. The company announced that the US ITC issued a claim construction order of SK hynix RDIMM and LRDIMM memory products that was in favor of NLST. Of course, the news excited investors, leading to gains in the value of the stock. Today, we’ll talk about:
- The claim construction order;
- what we’re seeing from NLST as a result; and
- what we’ll be watching for with regard to the stock ahead.
NLST Heads Up On Claim Construction Order
As mentioned above, Netlist is having a great start to the trading session early in the pre-market hours this morning after announcing that the US international Trade Commission (ITC) has issued a claim construction order. The order is the result of Investigation No. 337-TA-1089, an investigation of SK hynix RDIMM and LRDIMM enterprise memory products.
In the release, NLST said that the order was in favor of the company with regard to both of its asserted patents, U.S. Patent Nos. 9,606,907, and 9,535,623. Ultimately, the claim construction order will serve as framework from which the ITC will decide if patents are valid and infringed upon by SK hynix. Therefore, the claim construction order is a critical juncture in this case. In a statement, C.K. Hong, CEO at NLST, had the following to offer:
We are very pleased with the order and believe this is an important turning point in our dispute with SK hynix… In our view, the claim construction order was thorough, well-reasoned, and vindicates our belief as to the strength of our fundamental IP. This interpretation of the patents puts us in a strong position with respect to infringement, which was the only issue we didn’t win in our first ITC action. The order gives us significant momentum heading into the trials scheduled later this year in both the ITC and in Germany.
What We’re Seeing From The Stock
One of the first lessons that we learn as investors is that the news moves the market. In the case of Netlist, the news proved to be overwhelmingly positive. With the claim construction order, it looks like the claim will move forward and the company may be awarded money as a result of patent infringement. So, it comes as no surprise that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (7:15), NLST is trading at $0.25 per share after a gain of $0.10 per share or 70.07% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NLST. In particular, we’re interested in following the story surrounding the company’s continued work with regard to the protection of its intellectual property against SK hynix. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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