Finjan Holdings Inc (FNJN)

[lbcb123]

When looking at any potential investment you first need to ask if they have enough cash to implement their business plan. If not... you are gambling on a speculative play and need to get some lucky breaks as well as understand you will probably see rounds of dilution in the future.

The amazing thing here is they have not diluted in their entire history. They have funded their path to profitability with their patent portfolio and with a $40M judgment to probably get paid next year and another $15M which will probably get paid in 2018 plus more receipts scheduled from past licensing deals... they definitely have the incoming cash to do more than just stay afloat.

The market gives them zero credit for the one-off income from court wins. What is the game-changer for their future is BOTH of their business units (Finjan Mobile and CybeRisk) are close to becoming profitable and should do so in the next year.

Here is the main thing most people don't grasp here. They have been around a long time, but it was just last year their non-compete agreement ran out and they could begin developing their business units. They are meeting timelines and CybeRisk is now generating revenue and Finjan Mobile should do so in the next month or two with their mobile browser. It is ridiculous that their revenue from patent enforcement isn't seen as "recurring" when they stagger win after win and you can look at their pipeline and see revenue for the next 3 or 4 years, but that is just the way it is. Downside? You tell me when you find one. The only downside I see is perception. The ignorant see them as a patent troll while they have quietly gone about building not one, but two business units on the cusp of profitability.

They have leaders with proven track records of building multi-billion dollar business units at Cisco and elsewhere. All the pieces are in place and in my opinion... this will hit pop after pop as more milestones are hit and could easily be between $5 - $10 by the end of next year.