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Two things drive price. Fear and Greed. When they are at a balance the price is stable, when one dominates sentiment the price runs.
I’m thinking there was a step 2A in there. “Patent infringers petitioned the PTAB to declare subject patent technology unpatentable, instead of paying licensing fees for the intellectual property they stole and used”……
Impressive resume of upholding the rule of law, as well as a good background in intellectual property rights.
The leeway may actually be a blessing, as it gives them everything they ask for procedurally, and closes off avenues for future appeals.
From that perspective I’m glad they are following the process.
There is another process I wish netlist would call upon, the injunction. No more sales of alleged infringing products until this thing has been settled.
I know what’s up - my share count. Thanks for the dip, it tastes great!!👍
Been preparing for this for several years. Payoff time. Let’s go.
Ouch! Something is up (or down)…..
The wording was interesting that it was cancelled, rather than postponed. This overal situation were in with the absence of information has not really happened before. Neither has a huge settlement……. Let’s hope there is a correlation.
An important detail is that the trial was cancelled, not postponed. That speaks strongly to an imminent settlement agreement.
It’s a mess, but worth the drive. I hit key west a few times a year to dive on the wrecks, I can bounce down for the day and get back by dinner.
I actually live in north Florida, near Gainesville, but my work moves me all over the state, for years at a time. I’m in key largo for the rest of the year, unless we hit big. Then I’m done😁. The seven mile bridge is awesome, it’s the real break point between the middle keys and lower keys. Go over it a half hour before sunset, it’s worth the drive.
Florida Keys, 74 this morning, overcast and breezy.😎😎
That’s just based on P/E on earnings, then add in the penalties for the infringers……
Let’s go!
Happy New Year!
Remember, the darkest hour is right before the dawn. There are going to be setbacks as we move towards getting these court dates behind us. Just around 15 months until the curtain goes down on the first act of this production. Then we have ongoing royalties on tech that helps fuel AI.
Unless you’re in it for the long term and taking the opportunity to add….. then it’s good. This has another 15 months or so to run before it’s out of steam.
Nice find!
Six percent plus another three percent for damages seems fair. Make it a wire transfer, I wouldn’t trust a check from that bunch at Micron.
What did we find before? I think a typical tech licensing agreement is around 6% of gross revenue. $9bil for the license, plus penalties for willfully infringing and 3x damages? I’m good with that.
I’d love to see Micron quantify their liability exposure on their financial filings……. Saying you have potential exposure is one thing. Telling regulators and shareholders that you need to come up with a few billion is quite another.😎
Looks like another memory technology provider
https://www.memblaze.com/en/
I would really be OK with that.
They’ve been selling, I’ve been buying. I’m ok with that. Once this thing takes off the cheap shares will be gone forever. I look at each drop as an opportunity to accumulate.
Hong needs to stay OTC as long as litigation is underway. That way he can keep control of the situation without the encumbrance of a BOD. He’s a sharp guy and has brought netlist this far. I have confidence he can finish the job and get things to steady state with proper licensing in place that reward netlist for the intellectual property they have developed and patented.
This is going to be fine. The willfulness was determined by a jury, and the next two infringement lawsuits are carbon copies. The future license royalties are the prize here. Even if the judge gives zero enhancement to the damages, it’s enough capital to keep things moving until the memory chip market rebounds. This might just be a longer term play than anticipated.
Let’s go FOMO!! Fear and greed are the real drivers of price, time for both to kick in!
Interesting take on where this could go. None of it bad for shareholders of Netlist.
Nice that the headline includes “wins first in a series of lawsuits”. It points out that it’s more than a one and done.
They would be smarter to pay the judgement, obtain the licenses and move forward. Samsung has approximately $91 billion cash on hand, google has over $110 billion available. This settlement is rounding error to them, but huge to a company like Netlist. With the importance of Netlist patented technology (there is NO alternative) it’s time to grow Netlist into the powerhouse it should be.
The comment by Samsung that they plan to invest in facilities in Texas is a shade away from bribery…..
The darkest hour is right before the dawn. It’s going to be ok, if I had cash available I’d be buying more, I do not thing they will be this inexpensive anytime soon after next week.
My opinion, I’ve been wrong many times before.
The simple math of sales and royalty percentages yields huge numbers. I think it will come down to the jury deciding whether or not to go all in on actual and treble damages, or to show mercy. Personally I see the first path, no mercy on a mega corporation that has abused a small but critical company for years. We’ll know in a couple weeks time.
We’ll see - first trial is just around the corner, a couple more after that. I think institutional buying is put off by the pink sheet status, but uplisting comes with a loss of control that Hong doesn’t seem to want.
I think your $ per share numbers are way low.
Exactly. They can easily write a check for the back royalties in the order of $48 billion, and have enough on hand to carry on and generate future revenue to pay the punitive damages.
Yes, they have plenty of cash on hand to write a check for the $48 billion settlement that’s due. Over five years they had gross sales around a trillion dollars, and netlist technology was in around 80% of that, and is subject to the 6% royalty that is being discussed. That gets Netlist whole, for past royalties. Now let’s talk punitive damages on top of that.
$48 billion is about $190/share for the 250 million outstanding shares.
I did a quick search, it showed right up
https://companiesmarketcap.com/samsung/cash-on-hand/
Samsung has cash on hand of around $91 billion. I’m not feeling too sorry for them, they can write a nice check and it will clear.
The guilty plea is necessary for two reasons. First, it makes an appeal more difficult to obtain in the future. Second, with the Asian “saving face” culture, it will be absolutely devastating to the careers of the individuals who were ultimately responsible. I think a huge cash judgement is also in order, to the tune of present value of all licensing fees for intellectual property stolen, plus damages sufficient to deter any future parties who might get ideas down the road. I’ve given my back of the envelope computation of fees due - it’s in the $190/share ballpark for Samsung. Triple that for treble damages, they can stroke a check for $120 billion which puts netlist around $480/share. Then let’s have that talk with Google and micron.
I hope it is a requirement as part of the settlement, in addition to financial restitution. It sends a message.
While there is always speculation that netlist can get act in an aggressive and retaliatory way, they also need to remember that these are their customers, and to obliterate them is to destroy the majority of income for the company. A much more reasonable outcome would be a public admission of guilt from each of them, combined with cash royalties for the infringement period at market rates, and contracts for licensing of the technology going forward at a premium rate. Google has cash on hand to write a check for damages. Not sure about Samsung & micron. A public admission of guilt on the record in court would be worth the wait. The cash and contracts going forward will cover the billions that are due.