So, this is why ENER has a good run:
Energy Conversion Shares Advance on Deal
Wednesday December 28, 4:10 pm ET
Energy Conversion Devices Shares Rise 21.5 Percent on Venture's Licensing Contract With Samsung
NEW YORK (AP) -- Shares of Energy Conversion Devices Inc. surged Wednesday on news that its Ovonyx Inc. venture agreed to a long-term licensing contract with Samsung Electronics Co. for its nascent semiconductor memory technology.
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Under the deal, Samsung gains the rights to Ovonyx's "phase change memory," or PRAM, technology for 10 years. Piper Jaffray analyst Jesse W. Pichel said in a report that PRAM is "a potential Flash memory replacement and has significantly faster write and erase speeds and higher cycling endurance than conventional Flash memory technology."
"A deal with Samsung could propel this next-generation memory technology into the mainstream," he said.
Byung-Il Ryu, Samsung's executive vice president of semiconductor research and development, said in a statement that the licensing deal "will open doors to further development and research on phase-change technology."
Rochester Hills, Mich.-based Energy Conversion Devices owns about 40 percent of Ovonyx.
Shares of Energy Conversion Devices soared $7.36, or 21.5 percent, to $41.60 in late trading on the Nasdaq, as trading volume ballooned to about 5 million, versus a daily average of about 1.1 million trades. The stock traded at a 52-week high of $46.88 in October, up from a year low of $15.64 last January. |
