Unfortunately, I am not a legal expert so I am on very shaky ground if I tried to debate the enforceability of VISX's patents and the relevancy of any ITC decision to patent disputes brought up in another court. I think that VISX needs to have a conference call to explain the legal relevance of this decision to investors.
The Street, however, has determined that the VISX patents are now worthless. The stock will not recover unless
1.) VISX successfully negotiates licensing agreements with BOL and LASE or
2.) VISX wins on review of the ITC judge's decision or
3.) VISX manages to convince everyone that the legal standing of their patents is still intact.
I don't know how VISX can manage to do number three. We need a legal expert to determine our hopes on number two. I still have hopes that VISX can negotiate agreements with BOL and LASE on perhaps less favorable terms.
I, personally, would not play this price drop as a short-term trading opportunity (for those on the board who have asked). Very few investors and analysts understand the substantial changes that are occurring in the industry and it could be quite a while until all the factors get sorted out. As a long-term investment, however, I think this is a fantastic opportunity.
Finally, MGV, I wonder if you have any idea on what basis the judge made his decision. Was it based on issues surrounding the patents or on "domestic industry" issues? I hope VISX will enlighten us on the ruling.
P.S. - Does it stike anyone as interesting that VISX was torpedoed by a Japanese company on Dec 7th? My portfolio resembles the American fleet at Pearl Harbor in 1941. |
