ParkerVision (PRKR) Stock: Skyrocketing On Samsung (KRX: 005930) Settlement


ParkerVision, Inc. (NASDAQ: PRKR) | Samsung Electronics Co Ltd (KRX: 005930)

ParkerVision is having an incredible day in the market today, and for good reason. In a press release available at GlobeNewswire from NASDAQ, the company announced that it has reached a settlement with Samsung. Today, we’ll talk about the details of the settlement, how the market is reacting to the news, and what we can expect to see from PRKR moving forward.

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PRKR Reaches Agreement with Samsung

As mentioned above, ParkerVision is doing incredibly well in the market today after announcing that it had reached a key settlement with Samsung. Previously, the company filed suit against Samsung with regard to patent licensing surrounding radio frequency technology.

According to the announcement today, the settlement will give Samsung access to PRKR intellectual property. Under the agreement, the perpetual, worldwide license of the company’s current patent portfolio will be available to Samsung with some exceptions.

While we know that PRKR benefits from this agreement financially, how much of a benefit this will be remains a mystery. According to the press release linked to above, the companies have agreed not to disclose the financial information associated with this agreement. Finally, ParkerVision agreed to drop the pending litigation between the companies.

In a statement, Jeffrey Parker, CEO and Chairman at ParkerVision, had the following to offer with regard to the settlement:

“Samsung is a world leader in technology and innovation, and we are pleased to welcome Samsung as a licensee of our technologies and to dismiss outstanding litigation between the parties.”

How The Market Reacted To The News

As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company as a result. Of course, negative news will lead to declines. In this particular case, the news surrounding PRKR was overwhelmingly positive. As a result, the stock is skyrocketing in the market today. Currently (1:33), the stock is trading at $6.34 per share after a gain of $2.81 per share, or 79.60%, thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from PRKR. In the beginning, Samsung started as a defendant to claims made by the company. However, the company is now likely ParkerVision’s largest customer. While I have to say that I’m upset that the financial data was left out of the press release, this is, nonetheless, overwhelmingly positive news.

However, it’s also important to keep in mind that price movements in the market tend to happen through a series of overreactions. The gains we’re seeing today are massive. Therefore, we may see a correction bringing the stock down to a more realistic rate before gains can continue. So, be prepared for the dip, and if you’re interested, capitalize on it!

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What Do You Think?

Where do you think PRKR is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!

[Image Courtesy of PEXELS]


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