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March 23, 2005
LEXR Ka-ching! Wed., March 23, 2005, 6:56 PM
I hope you are not short LEXR! TheStreet.com report (copy below) says it all!
On the other hand, I hope you bought into my Feb. 16 idea to buy LEXR (at $3.88).
The after-hours trading in LEXR tonight is pretty impressive (up to $4.68).
LEXR took a huge hit last Thursday to $2.60. Today's close is $3.17. Tomorrow it should be well over $5.00.
The balance sheet is going to be in great shape with a further $1.60 cash per share. With the weight of litigation costs off the company's back, I could see the stock moving north to the $8.00 level, or higher.
Buyer beware, though, because there is an earnings report out tomorrow night and I would not be expecting superb news. So LEXR is a near-term buy, then a sell after the shorts have been squeezed, and then a definite buy candidate after the stock comes back off again. That's because flash memory is still the name of the game!
Yes, I needed this one; too many readers had been thinking I am a perma-bear or polar bear, or whatever, which is a shame because I play the market both ways. I am a trader.
Lexar Media Wins $381 Million Judgment By TSC Staff 3/23/2005 6:21 PM EST
A California jury decided that Toshiba must pay Lexar Media (LEXR:Nasdaq - commentary - research) $381.4 million for breaking a flash memory development agreement, according to published reports.
A state court jury in San Jose, Calif., found Wednesday that Toshiba broke a 1997 agreement with Lexar to use and co-develop the technology, then shared it with SanDisk (SNDK:Nasdaq - commentary - research), Lexar's largest competitor, according to Bloomberg.
"It's disturbing that it took two years and millions of dollars of Lexar's money to get Toshiba to acknowledge what it should have acknowledged years ago," Eric Whitaker, Lexar's general counsel, said in an interview with Bloomberg.
Lexar was seeking more than $1 billion in damages and a court injunction stopping the sale of Toshiba products that use Lexar's technology. A separate hearing to determine punitive damages is scheduled for Thursday.
Shares of Fremont, Calif.-based Lexar jumped $1.18, or 37%, to $4.35 after the verdict was announced.
Posted by Posted by Bill Cara on March 23, 2005 06:56:58 PM | Category: Flash Memory