Here is what bothers me more than anything. It seems the previous lawyers DSS did a poor job of moving the case along and communicating. That is a problem DSS management has to be more on top of. The delays if they occur are the fault of DSS management in my book. If the Markman gets delayed 5 months we will remember foundly the days when the stock price was anywhere near $1.50. Welcome to the public world, where you get hammered SP wise for failing to reach your targets.

So basically FB is requesting a 5 month delay to the Markman hearing. If DSS is saying they are ready to go and will adhere to the original schedule then FB seems like they are just throwing up a delay tactic.

lol yes logic and litigation do not work together well...and believe me I know it all too well for personal experience. With that said though, it is not the court trial date or the decision here, it is the Markman. I would be a lot more worried if this was the trial they were pushing back. I would guess 1-2 month delay.

Cooler, I think that is part of the problem. We honestly have no idea at all if it is 50/50, 90/10, 10/90. Its a total guessing game whether the court will move the markman date. The only thing I think we can say with some confidence is that IF the date is moved, it should not be too far out.

Yeah, if we can hold $1.60 here I think you are going to see a strong close perhaps near $1.70 as the buyers are here and sellers running out of steam.

Also looking at the low for the last 4 days now: $1.47, $1.48, $1.45, $1.50
So we now see a solid base in place. The longer the price sits on the door step here at $1.60, the likelyhood is a push over $1.60 soon.

Yep PI, that's what I thought I was seeing 2 days ago, some bigger player buying. The stock is being made to look offered this more by the MMs, but the truth is there is a lot of buying interest and I think we will end back over $1.60, this has all been a game this morning to pull the price down but on nothing...it opened 20 cents lower on 30k shares traded...that's a game.

Seems as baffling as ever. I think it will rebound back. Nothing in the CC would warrant a 12% drop

And we are down 20 cents.

New article from The Street, listing DSS as a breakout candidate:

http://www.thestreet.com/story/12008065/3/5-stocks-under-10-in-breakout-territory.html

Yep, I think everyone agrees that at this point the Markman is the most important short term item. It just baffled me because I thought Novell was settled, yet he is saying they are managing it to see the good result we all want. Hmm, got me on that one.

Overall though, I thought it was a good call. There was good information shared and I think the next 4 months are going to be very busy between the Markman, Authentiguard and more IP related activity.

They very much went out of their way to shed a bit more light on the SP decline since the merger. Overall though, I do not see a lot of downside from here and was happy with the picture painted and will continue to add.

Yes, I would tend to agree with you Chas. While pulling them off the list might have been done for others reasons beyond not delaying the Markman, the Markman is definitely a big consideration and likely the primary reason here.

The Novell settlement answer was a little baffling, not sure what this means:

Jeff Ronaldi - CEO
Yeah unfortunately we are not able to comment on the Novell dismissal from that case. I can say we continue to manage this thing and work towards the positive results that we all want to see.

Chas,
Yesterday it felt like the $1.52 area was very bid and the MM's brought it down to $1.45 and right back up. Today they did close to the same. I am not sure if any one MM is holding it back, I almost though though like we are going to find out a few big buyers have indeed stepped in at these levels. When they take it down it is on low volume but volume increases on the upswings.

Overall though like you said....it's DSS and most trading logic is out the window at least for now.

Bring on the CC!

I would expect a pretty quiet trading day ahead of tonight's call.

sorry DP

No Chas, your a big part.....hope you are feeling better BTW. The board is very solid and provides great information. As an accountant/finance guy I always tell my employees/other management that our job is present information and numbers as they are, good or bad.

Same goes here, we want information, because good or bad, getting info and making more informed decisions is the key. So a big thank you out to you and the rest of the information gathering folks of the board.

Tomorrow is a big day for DSS (or tomorrow night should I say). The SP rebounded nicely today from a dip into the $1.45 range, it looked mostly bid all day and that drop looked like a MM move.

I would encourage everyone to call into the call if you can. From the press release, they are going to cover a lot of ground and honestly, they need to.

On a separate note, as people have said, we will find Hudson's next play....and abuse the option market :)

Watching the trades while we aren't going anywhere fast, what it happening is a bid is hit and the next bids are coming back higher. We might see a move up this afternoon as there is buying interest in the 1.52 range.

Thanks cooler. So using some high level numbers for Novell, even say on $900 million in revenue and 10% of that. At a RR of 4% that is $3.6 million in revenue to DSS. He'll even at 5% of total revenues that is $1.8 million. These numbers are not immaterial to a company like DSS which has lost money prior to the merger.

You are correct on the difference the 241 patent adds to the FB and LKND case. I am not sure how much exactly but rereading the patent and the case, it really is the basis of how FB operates and also how the sell advertising. I would be stunned if the % of revenue to be asserted against was anywhere even close to Novell...et all.

Yep, because the market cap is small and there are large shareholders, crazy stuff can and has happened. The stock has not really traded with TA....its basically traded like this: Sell and continue to sell with a few days of good news. But right now with the overall market doing very well and other small stocks moving in the right direction, interest is just not here. I think the interest started to come with the Novell news, but the very next day we get a reason to scare off buyers again. The conference call is a good opportunity but if the Markman is delayed, that will knock us lower no matter what they really say (short of them saying, they are committing cash to buying their stock back).

As you said, this stock does not really trade like any other I have previous seen....in many ways I feel like we are always finding out news after the fact or missing something.

I still think nothing from a company perspective has changed though.

1. They have secured 3 settlements, which covers their cash requirements (maybe a lot more if the Novell settlement was very good).
2. The Markman should come in 2013 (hopefully on October 2nd).
3. An operating business that honestly should not be very hard to grow and make profitable. They just secured the new loan for equipment, you do not do that without plans to grow the business.
4. Beyond FB, LKND and Salesforce, the patents have plenty of other potential to bring in revenue from other infringing companies.
5. FB and LKND will fight to the death, but proven expertise of this management is obtaining settlements or judgements.

Unless the patents assertions are proven to have a flaw or management just flat out performs as bad as the previous incompetent regime (do not like that some of them as still here), then DSS's time is coming in short term and long term. Its frustrating as hell to see the selling the majority of the days, but the catalysts are coming and I just continue to accumulate more shares at these levels.

For now at least $1.50 seems to be holding and starting to see good buying interest now in the area. Would be a good sign to hold $1.50 and close back above $1.60 today.

Nope not yet at least, but there is a delay in the claim construction hearing and any delay is going to be perceived negatively. It could lead to the Markman being delayed or it might not...but it is uncertainty.

Yep well also the minute we get some good news it gets offset by the court delay. I think that more than anything is the reason we are right back door. The market hates uncertainty and once again we have it here. The good news is that at worst it's only a time delay, no one so far is punching holes in the patents.

It's literally all sells this morning so far.

I am also curious why it is still referencing the salesforce case, when that has been scratched.

Thanks for posting. This moves the markman hearing too?

Chas, it usually means that there is more behind the bid or offer than you can see. When I was an FX bank trader, you would see a bid hit for an amount of say $10 million USD/GBP and the market would stay at the exact same price. You would ask the broker how much that is "on the bid" and get an answer of 10 dollars (dollar = million in the FX world). Hit the bid for another $10 million and it comes back rebid. So WTF? Well, the bidder or broker, either one is hiding there real order size. MMs are no different in the stock world, what you see is actually only about 50-70% of what they have at times. At times I would go to the broker and say "if I hit the bid for 100, what would happen"...and I could tell by how he/she gave me an answer what was really there.

Chas, to be honest I was talking to my brother this evening more about the after hours trading that has started to occur the last few days. Tonight so far the stock has traded as high as $1.74 (7 cents above its close) and last night was the same way, it traded well (ok well for DSS) above its close. More importantly it opened pretty damn close to the $1.60 level this morning. I have always said, if we get good news and volume buyers in here, I could care less who is selling, they will be wiped out in the run up and I still believe that. We need attention to the stock and I think we have started to really get it. The Novell settlement should be good news, the case against Salesforce is a good thing as well because honestly FB and LNKD are going to fail on their delay attempts now.

Turning to today though, what i did see was a few very large orders go through of 50k+ shares. Trading 1.1 million shares was an excellent sign and I think tomorrow we are going to open up in the 1.72-1.75 range and the volume will continue.

I will say this though, if we trade back down under $1.50 now, all this news it for naught...we should definitely not retest there, we should be testing 1.90-2.00 in the next week.

For a short term gain I hope to see the momentum guys, but as I said those guys are out as fast as in. They took SPEX from 9 and change to $27 in a day and my guess is that stock is going right back down to $9 again in the next few days as those guys are gone and pumped and dumped it. Its always good to follow these guys...if you cant make money on the way up ....you can make it on the way down after they leave. I really want DSS to see legitimate buying first without these guys, then they come in and take it over $3 again.

And saying that a 63k share order jus went through at 1.63. (See chas they hosed you yesterday...lol)

Well the SP is opening a bit higher today, lets see how it responds over the next 8 hours

It is more than likely that if salesforce is joined the Markman gets pushed back.

I am not sure what level management put for materiality, but a company with only 6-7 million in cash, Any settlement over $1 million is material. So the settlement would have to be smaller than with Jive....which is virtually no chance. I go back to a few things, first that the author is telling you to call their IR...damn practically imploring you. 2nd, I still can't get my head around the company accepting a poor settlement and equally that all they were looking for in this case was an immaterial amount of money.

I do think next week we will get a little more light but to be immaterial to a small company like DSS has to put the settlement under Jive.. And I just don't buy it...could be wrong, we will see.

One thing for sure, new management does not know how to communicate well in the public world so far.

The last trade after hours is now at $1.60. It is nice to see some after hours buying and very interested to see where it opens in the morning. The Novell information should really help even if we do not know all the details, it takes some doubt out of the stock.

Will Chas's last 18 Sunday Rants do? lol

Street, I think you have your answer now in the information disclosed from the company.

TA is something that guides technical traders in the absence of news. News always is the primary driver, we just do not get enough of it. As you see with SPEX, news can also bring the momentum traders which dwarf the TA guys, but are very short term (like a day or 2). At the end of the day though, all signs still point to the company accomplishing their short term goals and with a well laid out plan at the CC, you could very well see the move back up begin. To be a very sharp recovery, you need good news on bthe Markman hearing front (not delayed) then a positive ruling on which exact revenue can be included for FB, LKND and salesforce. The Novell settlement is a very key milestone, I think we will find out in the next month or 2 exactly how much so.

Yep I agree PI, calling the company IR was loud and clear. As I previously stated, I think the settlement is a good one for DSS, including the RR. I do not think there is any doubt the company is behind this article and likely can't say anything yet, so SA is saying it for them. A week from today is a pretty big day, DSS has a chance to really knock it out of the park with a strong call.

Chas,
I have had it take about an hour to full a large order, but I guessed it was because i put a limit order in and would not move it price point. I would be surprised if they broke it up and still needed half a day to fill it...I would indeed chalk that up to the MM screwing around.

So no mention of salesforce.com in the litigation. Man it's really not this hard to do research.

Well think about what you are saying. Basically that DSS accepted a poor settlement. Ok so why would they do that? 1. They do not need the cash more than a good settlement. 2. They are going to go to court with at least 1-3 of the remaining defendants, so it is not as if they avoid a court date. 3. A bad settlement would negatively affect future settlements on the patents.

I can not come up with a single logical reason why DSS would accept a poor judgement and a ton why they would not.

On the disclosure, I hear what you about disclosure. I think we will hear more next week at the earning call. It has been discussed here that this settlement likely does have to be disclosed yet as it is very likely 3q revenue and beyond. When I add it all up, Novell not DSS is much more likely to want the silence as part of the settlement (at least for now).

It was a paim to get shares earlier today to short that sucker, it's well overdone right now and primed to come back a good bit.

I would love to see DSS get a huge boost like this, but also a move that is a bit sustainable...not one once the movement guys pull out drops the floor.

Yep, assuming the Markman does not get moved from early October, the money will move back into DSS. A move to $4-$5 is not crazy with the right types of buyers coming in. One would have to assume that the Novell settlement was a good one for the company. Next Tuesday is going to be a huge day for DSS to put itself back on the radar, new management can't afford to screw it up. DSS is the forgotten stepchild right now, a good vision laid out by the new management with a highlight of positive events so far is crucial.