Wednesday, August 23, 2006

So, as I said... that was pointless

As a followup to the Creative vs. Apple Zen interface patent (Creative pioneered the first hierarchical interface to navigate gigabytes of songs on it's iPod-preceding hard drive-based MP3 player), the two parties have announced a one-time licensing agreement and have settled all of their patent disputes.

Apple is paying Creative $100 million (or about 6% of their 2005 profit) that will ensure Creative's profitability this year along with expected holiday sales. So, how do I feel that Creative's stock price rise in one day eclipses[comes close to matching] my return on Apple stock over the last couple of weeks? Eh... I don't entirely regret my switch, but obviously I would've come out ahead if I did NOTHING. Damn you, Jehangir, you just might be right. Of course, it is after hours trading so we'll see how it goes. At least I am ensured the right to avoid capital gains this year if I hold on to Apple through the holidays (won't realize gains if I don't sell).

BTW, don't get all worried about Apple (no one's really worried), since they have billions in liquid assets (I think around 8?).

SOURCE: Red Herring via Google Finance

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