Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of radio frequency technology company ParkerVision (PRKR 9.04%) jumped an incredible 78% today after winning a patent battle with Qualcomm (QCOM 1.56%).
So what: A federal jury found that Qualcomm directly and indirectly infringed on ParkerVision's radio frequency receiver and converter patents in their semiconductor chips. The trial will now enter a phase that will determine whether infringement was intentional or not, and how much the judgement will be for Parkervision.
Now what: Parkervision was originally seeking a $500 million judgment, but it's really unknown what the jury will decide to award. Then, we're likely in for a long appeals process, which often modifies some of the original decision as well as damages. No doubt this is good news for ParkerVision, but putting an exact value on the verdict is difficult with so many unknowns. This could pay off in spades for investors, but it's just too risky for me to jump onto a bounce like this today. Investors should make sure they're investing in ParkerVision for its core business and not this patent verdict alone.
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