Netlist, Inc. (NASDAQ: NLST) is having an overwhelmingly strong start to the trading session this morning, following up on the more than 90% gains seen in Friday’s session. Ultimately, the gains are the result of claim construction news with regard to patent litigation between NLST and SK hynix. Today, we’ll talk about:
- The news;
- what we’re seeing from NLST as a result; and
- what we’ll be watching for ahead.
NLST Climbs On Claim Construction News
As mentioned above, Netlist is flying early on in the market this morning, following up on gains from late last week after news broke with regard to a patent dispute between the company and SK hynix. The news broke Friday morning, when NLST announced that the United States International Trade Commission (ITC) issued a claim construction orderin an investigation of SK hynix RDIMM and LRDIMM enterprise memory products. Ultimately, it is believed that the company has infringed on two United States patents in the creation of these products.
In the release, NLST said that the Administrative Law Judge sided with the company on key claim construction issues at the heart of the investigation. Moving forward, this claim construction order will act as the framework for th ITC to decide if patents are valid and infinged by SK hynix. In a statement, C.K. Hong, CEO at NLST, had the following to offer:
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
As investors, one of the first lessons that we learn is that the news moves the market. In the case of Netlist, the news proved to be positive. After all, with the claim constructon order, it’s time for the patent case to move forward, and it looks like an easy win for the company. So, it comes as no surprise that excited investors are pushing the stock up. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (7:38), NLST is trading at $0.54 per share after a gain of $0.26 per share or 91.95% 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 continuing patent infringement case. At the moment, it looks like the company is likely to come out the victor, but anything can happen in the court of international law. Nonetheless, we’ll contnue to follow the story closely and bring the news to you as it breaks!
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