I've been killing it in the market last week. I made my best trade ever in PRKR banking me over 100% in a few days. PRKR is a semiconductor company who has been locked in a decade long patent infringement battle with QCOM. I was fortunate enough to ignore that lengthy battle and got in on the oversold Doji reversal day. Last and this next week are huge for PRKR. They won the first part of the lawsuit and as a result skyrocketed. I reduced my position and now am just letting house money ride.
After that huge move PRKR still has lots of short interest in it. In fact in the last few days according to http://shortanalytics.com/getshortchart.php?tsymbol=prkr Short Interest (Around a huge 43% of the float) has remained steady and actually gone up a bit. Conflictingly according to http://shortsqueeze.com/?symbol=prkr&submit=Short+Quote%99 the short float is just 26.52%. Im not sure where to find the most accurate up to date short interest information so if anybody knows please tell me. Anyways there is no way that all the short sellers have bailed and the second phase of the patent infringement lawsuit is coming. The second part is actually the most important part of this trial in my opinion because it awards the damages that QCOM must pay to PRKR. According to JP Morgan if found guilty the damages could be between $500M - $2B. Parkervisions market cap is currently around $500M so if this pans out for them they stand to see a tremendous influx of capital.
I dont think that this move is over. If they get awarded a good amount of money for damages this stock has another massive rally ahead of it. FWIW the average analyst pt on the street for PRKR is around $11.25 and this stock at one point long ago was trading in the $50 range.
Would I chase it here? Tough call. After the explosive rally last week I would expect a pullback before the awarding of damages however don't be too surprised if it shoots to the moon. I'm not exactly sure when the verdict will be reached but I am confident that once it is this stock is in for another explosive move one way or the other, Im banking on up.
Epic short squeezes have been a common theme of the 2013 bull market. With heavily shorted names such as NFLX,TSLA, and even P rocketing higher 2013 is not a good year to play the bear. Sure we have this government shutdown, the debt ceiling, the sequester, and all the other washington charades that keep popping up and disturbing the stampeding bull market. However, it is my opinion that sooner or later those tea party extremists are going to cave and all will be well with a nice rally to show for it.
R. J. Sullivan IV