OPTi, Inc. (OTC:OPTI) Gets Even More Overbought

After staying at one of its lowest levels for this year for almost two months, OPTi, Inc. (OTC:OPTI) stock woke up about a week ago. The promised dividend payments must have been the main reason for the sudden breakup, but it was not the only one.

Yesterday, OPTi stock enjoyed a lot of investor attention, in fact, much more than the previous days. Nearly 74,000 shares were traded, as compared to an average volume of 8,000. The shares opened the market with a gap up and closed at $3.83, which was another 3.51% increase from the previous day. The promised $0.75 per share dividend announced last week and the rapid up move of the stock has attracted the attention of stock promoters these days, who must have seen again an excellent opportunity to bank some profits for their own account.

The already famous www.shamrockstocks.com (the one who sells its stocks IMMEDIATELY!!!) was only one of the many, and he was as always ready to share the gains from his “Lucky Picks of the Day” with its newsletter subscribers.

Regardless of the vastly alerts, it seems that OPTi has no operations over the past several years. From its inception in 1989 until 1995 the main business of the company was its core logic products for desktop PC. Though, that business did not prove successful and was abandoned completely in 1999. From 235 employees and $163.7 million sales at that time, only one full-time employee is left and now the company relies solely on revenues from license contracts, which however do not seem to be that easy to collect.

Last year OPTi received only about 17% of the license revenues received the year before and they were related to a license with VIA Technologies. Previously, revenues were also coming from agreements with NVIDIA Corporation for the company’s predictive Snooping technology. Though, NVIDIA has recently claimed that it is not using the technology any more and has accordingly ceased the payments.

Currently, OPTi sees as its main objective to search for licensing opportunities and to stop potential infringement of its intellectual property in the core logic area. A number of patent lawsuit are already running, including against NVIDA and Apple. The outcome of those two last lawsuits seems to be critical for the future of the company.

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