Judge Kramer Delays the BUS!

Rambus (RMBS) shares are getting clobbered today, off -14% intraday as news spilled out from a San Francisco court that the anti-trust trial was delayed until early January 2010.  Apparently an attorney representing Samsung was labeled “gravely ill,” and judge Richard Kramer determined January 2010 was the best time to re-schedule the pivotal trial.

Judge Kramer is giving Samsung time to get another attorney up to speed, and taking into account the holiday period around Thanksgiving and Christmas – since a lengthy trial could be a burden to the jury.

Event driven traders moved quickly to the sidelines today, but nothing has fundamentally changed.  We detailed our bullish conviction here, and would certainly not recommend bailing out now.  In fact, today’s sudden pullback creates an excellent entry point for risk tolerant investors.  A settlement before trial remains a real possibility.  Rambus also has a disagreement with NVIDIA (NVDA) that could come to a head at a hearing in mid October.

Let the day traders purge, and hope some misguided investors drive up the short interest.  They are creating the perfect set-up for a monster move higher later this year.

Disclosure:  Long Rambus Common Stock