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Re: nicklaus1 post# 24710

Friday, 02/10/2017 3:08:40 PM

Friday, February 10, 2017 3:08:40 PM

Post# of 46686
Perhaps I misunderstood but it seemed like you were saying the lawyers cared about the pps

While Kidrin cares about the stock price given how much stock he owns his decision still won't be predicated on that since no one can predict how the market will react

His settlement decision (assuming not court ordered) would be based on

Comps - comparable settlements in the space - royalty rate % etc

Risk and time value - removing appeals delay and risks

And ensuring he sets a strong precedent for other suits

The market may or may not fully price in or appreciate whatever settlement is achieved and as such stock price is a tertiary consideration - as its not predictable

Stock price "falls out" of the settlement value and the market may fully value that settlement (or more) or not.

Kidrin cares more about settlement value and what type of leverage it gives him vs others

Realize, if the market doesn't fully value the settlement he can always divvy out cash and he's ahead given how much stock he has.

I disagree w your view