Off to Berlin... Placing some trades...

I'm heading off to Berlin for a few days. I'll be back next Thursday, but I'm interested in a few things I think might happen.

So I'm placing two REED orders. I sold mine today 1000 @ $2.55/$2.54, profiting $217 on my initial purchase of 1000 @ $2.34/$2.32. (Since there is such low volume on REED, you can't typically complete your entire order for the price set. When my SELL triggered today at $2.55, there were only 500 bids at that price; the BID then shifted to $2.54 leaving me with an extra 500 shares. I moved my sell order down to $2.54 to move them and they sold.)

My order book also has some Tessera in it since it's due for a bounce. Their Amkor arbitration is hitting on June 10th, so I'm watching to see what happens there. I think they already won and are just determining settlement stuff but that's a big deal and if it's great news, we'll see a huge spike. My play is a mid-term, but if it doesn't auto-sell by the 10th, I'm going to cancel a sell and/or buy it if it didn't trigger to begin with. We could see a $5 (20-25%) bump on good news about this.

I am also still in 40 AAPL @ $184.35. Watch to see what happens on the 9th with iPhone chatter. I don't know how much of it is priced in but I think "amazing features" and "available immediately en masse" could be enough to push this past its support. There's been chatter of it for months but the steady increase hasn't been related to pricing in on that. I think it can break $200. Let's see what happens.

Here's my order book:

TIME		DESCRIPTION	STATUS
6/7/08 04:21:07		SELL -250 TSRA STP 14.00 GTC TRG BY #48238739 OCO #48238740	WAIT TRG
6/7/08 04:21:07		SELL -250 TSRA TRSTP MARK-.17 MARK GTC TRG BY #48238739 OCO #48238740 WHEN TSRA MARK AT OR ABOVE 19.65	WAIT TRG
6/7/08 04:21:07		BUY +250 TSRA TRSTP MARK+.17 MARK GTC WHEN TSRA MARK AT OR BELOW 18.75	WAIT COND
6/7/08 03:14:22		SELL -1000 REED @2.55 LMT GTC TRG BY #48238495	WAIT TRG
6/7/08 03:14:22		BUY +1000 REED @2.10 LMT GTC	QUEUED
6/7/08 03:12:47		SELL -1000 REED @2.50 LMT GTC TRG BY #48238484	WAIT TRG
6/7/08 03:12:47		BUY +1000 REED @2.25 LMT GTC	QUEUED

GOOG spikes dramatically...

Damn. 17% in aftermarket from $445 to $525. Should've jumped on board, but it was looking kinda scary with their new quality controls. Be greedy when others are fearful, though...

ABT is just festering for no good reason. I'm going to hold it a few more days and then dump it if we don't get Xience news. Sad that it beats expectations, beats guidance and posts strong numbers and still drops. Worse still that it's doing this in the midst of plenty of other pharmas posting bad numbers and it's not able to pick up slack from them.

Still waiting on Amkor news from TSRA... Still have high hopes.

I think I'm going to buy into AAPL for next week's earnings call and go long, perhaps for the trip. We'll see how risky I'm feeling. For now, I'm still down about $100 total. Kinda sucks. (The Coverstor shows the return on my brother's in-and-out movement, so that's why it's showing a positive return.)

Sold BRK, Bought TSRA

Symbol	Action	Qty	Acct Type	Price	Total
TSRA	BOUGHT	53	CASH	$21.45	$1,143.85
BRK/B	SOLD	1	CASH	$4,466.00	$4,458.97
TSRA	BOUGHT	47	CASH	$21.46	$1,015.62

I originally bought BRK/B 1 @ $4,374.50 (incl. comm.), so selling at $4,458.97 yielded me $84.47. Which is nice, considering the "fun" I'm experiencing with TSRA. I'm in for a penny and a pound at $2,159.57. Hopefully, the patents don't destroy me. But I'm still wanting to stick around and hoping for a good outcome there. I won't buy in any more than that.

TSRA dipped on news of the patent stuff which stung my position, but that's what happens.

Overall? For now? Up $158.87. Visa needs to bounce one way or another and hopefully not erase my BSC gains.

Tessera Patent Panic: What happens when people don't read *all* the words...

EDIT: I'm now pretty damn confused because only a few were even examined originally; so it may in fact be that all that were re-exed were rejected. We'll see what that means soon enough. Or I'll lose $2k.

Tessera received an initial action today from the Patent Office that some people interpreted, once again incorrectly, to mean that their patent had been invalidated. This was exacerbated by idiots posting "ALL CLAIMS REJECTED" onto Yahoo and Google's Finance boards. Awesome.

In reality, only 7 of the 27 claims of the patent in question were dumped. And the remaining 20 were essentially re-affirmed.

Here's my full rant on the boards:

Alright, a lot of people have been fear-mongering OR unintentionally
misreading the USPTO's office action which became available on PAIR
today. (Available here: http://portal.uspto.gov/external/portal/pair
Control number:90/008,484)

Let's be clear that the SUMMARY OF ACTION clearly states that SEVEN of
the 27 claims were SUBJECT TO REEXAMINATION and subsequently REJECTED
outright.

The remaining 20 claims were "not subject to reexamination," which
actually in force makes them stronger.

Summary of action:
1a. Claims 1,5,6,17,18,21 and 22 are subject to reexamination
1b. Claims 2-4,7-16,19,20 and 23-27 are not subject to reexamination
4. Claims 1,5,6,17,18,21 and 22 are rejected.

Now before we take a look at the claim language from the actual
patent, US Patent Number 5,679,977 (Available here:
http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=P...),

let's consider:
A) The patent is in full-force and effect while the case is being
examined
B) The claim is non-final office action, and Tessera will appear it
anyway

And now let's look at the claims and examine which have been rejected--
mostly the non-specific elements. Now, that's not to say that those
elements don't narrow it down to the scope of exactly what's at issue
here. It's not to say that I even know anything about the specificity
with which the patent examiner has knocked down certain claims over
others. It *is* to say that the specifics have been mostly upheld and
that MOST of the patent is intact and survivable in that form. Not
only that, but before an appeal even, those elements are "not subject
to reexamination" and thus COMPLETELY LOCKED as valid.

Please feel free to correct me if I'm wrong about any of this. I am
not a patent officer, attorney, lawyer or anyone even remotely
intelligent in any of these fields, or in trading in general. I am
just offering the facts as *I* see them, since I'm sick of reading
"ZOMG THE PATENT IS GONE" based on a 10 word wire piece. Seriously,
people.

Pre-Market TSRAing...

Action	Qty	Symbol	Price	Total		Acct Type	Trade Date	Time Completed	Settlement Date
BUY	47	TSRA	$21.46	$1,015.62		CASH	3/31/2008	8:01:30 AM	4/3/2008

Done and done. Back to bed. Happy to have bought below Friday's close, even if just barely. ($21.93)

A pregnant pause... entering Tessera with no available out for 3 days... (TSRA)

Tessera is a microelectronics company that holds a bunch of patents directly correlated to miniaturization technologies used in the semiconductor industry. They receive lots of royalties and licensing fees from Intel and other major semiconductor manufacturers.

Motorola has been trying to bitch slap the patent infringement suit Tessera has brought against them, which is kinda a big deal: If the patents are indeed not infringing, there's something to be said in a worst-case-scenario kinda way that they could be overthrown entirely and Tessera could lose their current clients. Bad news.

As a result of this fear, and several USPTO re-exams tossing claims, Tessera's share price completely tanked in February, from $40 to a low of $13 in seriously about a week. Ouch.

An ITC judge issues a stay against them, which killed them further. Tessera clarified that USPTO's claim-tossing was NOT the same as overturning their patents; quite different. This helped them out a bit. But yesterday, the ITC appeals panel unanimously overturned the stay and is allowing them to go forth with their claims. That caused a MASSIVE spike of 33% (+5.44 to $21.93) Friday alone.

Here's the thing: Tessera is a pretty stable company in terms of operation and IP. They have a bunch of major players paying major licensing fees to them for their technology. An analyst at Lehman Brothers is putting a price target of $46. From an intrinsic value standpoint, you're looking around the $40s at least, where it was trading for most of last year.

What's that mean? It's a steal at twice the price, even at $22. I'm going to put my liquid $1,000 into it @ market on Monday.

The only problem is that I free-rode Friday with Red Hat. (Bought in and then sold with unsettled funds.) If I do that twice, I have my account frozen for 90 days. This is why I need to sign my margin authorization. (Margin accounts aren't held to the free-ride stipulations. Even when you're trading in cash.)

So I'm effectively locked into this one for 3 days. But I think it'll be well worth it. I'm not sure how long I'll hold onto it. Any settlement or further upward movement in this court case could cause this stock to absolutely skyrocket. If they "win" in any form, we're talking a HUGE boost. It'll reaffirm their position beyond all doubt (as opposed to the unanimous overturn which simply helped them quite a bit) AND lock in a major cash influx. Huge potential here.

And if the ITC was overturning the stay unanimously, they clearly think there's some merit there. Not to mention the fact that Intel and a bunch of others are already paying the licensing fees without a peep. Some real potential here. Not sure what I want to establish as an exit strategy; if I want to hold medium or wait for a ruling on the case... if they failed to secure a victory on the case, all hell could break loose.

Either way, I'm seeing some decent short-ish term growth on the horizon. Maybe a jump on Monday, but having the free-ride limitation might actually help me out and not panic if it slips a little on Monday. (I fully expect it to go up though; there's going to be major support @ 22 and gnashing of short-covers.)

Open Orders

Status Symbol Action Qty Order Type Duration Order Time Session QUEUED TSRA BUY 47 MARKET DAY 3/29/2008 1:45 AM Regular