M&A business
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Screening through various charts going back some years, what can I see. Wild swings – from a stage of euphoria to a stage of frustration and then back up again. Prices move in cycles and in hindsight all can be explained, but unfortunately not before.
There are so many examples that it would fill pages to present them but I am sure, everybody will know some names
.
DECN goes through cycles as well and if all would have gone according to the script, all those witnessed waves within the last 2 years would not have happened, but then for this, nobody can blame DECN – they did actually more, than what could have been expected by a small company. While other small companies would have given up, they fought. The blame is given to J&J who does what it does best under such circumstances, using their war-chest to try the legal system up to the limit.
Being involved in a patent-infringement case, has brought bigger companies to their knees than DECN, but DECN was not brought down to their knees and this thanks to the management who was able to attract not only one of the best legal brain for this case, but then as well funders, willing to go all the way with the company. That this would not come in cheap is understood. I will not even try and start to present the costs of those 2.5 lost years but it should be clear, that without dilution it would not have worked, as money is not for free and never was. But then, when presenting the bill to J&J it will not only cover those lost years it will cover much much more and if a judge will see it the same way, then DECN should be compensated plenty enough to make this up.
Where is then the difference between DECN and a Biotech Company that get’s financed with dilution to pass all those trials from phase 1 to phase 3? None. Those investing in Biotechs know, that the risk-reward ratio is 80 to 20, however those 20 % are enough to cover the risk by far, due to the explosive moves such stocks then have once they have cleared trial 3. Either they are taken out by the biggies or survive and grow as independent company. Nobody complains in this sector about the dilution as without dilution no Bio Company would ever go over trial 1.
With DECN it is no different. When they got sued for infringing a patent, the risk/reward ratio was certainly not in favour of DECN on the contrary. But in this case it was not about clinical trial 1 up to 3, it was all about surviving the next court decision. And survive they did as J&J lost across the board in the courts and is now trying the last stand, which only will increase the amount they finally will have to pay to DECN.
To make it clear to all new-comers: It was J&J who offered DECN a settlement amount not visa-versa. That DECN refused to accept the offered amount speaks for itself but then it is as well a clear signal: J&J admits, that they lost as only the loser offers for settlement, never the winner and from this point of view – it ain’t over until the fat lady sings.
Like in life: How many ugly duckling became later the darling of everybody? Will be interesting to see, how long it takes that DECN will reach the same status. At least some big funders see beyond the ugly duckling status and as always, those who take the risk deserve to be rewarded at the end. But this is nothing knew: The stockmarket is the place where "Schadenfreude" and "Celebration" go Hand in Hand.
Yesterday the bid was visible with 0.0002 for about 17 Mio shs but this stubborn ask wants 0.0003. Who will give up first?
From where I come from, there are neither capital gains nor capital loss taxes so nothing to Offset, but then one can trade against the box.
All those buys since December 2014 Point towards a solution of the present mess but when asked, what solution, then I have no answer either, unless the Company get's en current with their filings.
AAPT in the last 2 years gave plenty of opportunities to trade against the box. This has nothing to do with shorting, you Play against your Position (Nostro). Being done as well by most of the MM's. What is the risk on this strategy - Zero - worst case you lose your Position or part of the Position.
Of importance at the end of the game is, at what cost Price is your Nostro and do you believe in a Revival big enough to get you out with a nice Profit.
Conclusion then: Settlement date is then, when one either has liquidated all or get's liquidated because a stock is no longer trading.
Watching the bid side I get the Feeling that I am certainly not the only one playing the game.
Brilliant Input from your side. Now all we Need is the confirmation, that DECN got hold (control) of those patents and if so, we can all then use the calculator to work out some nice figures.
Make your math.
Easy to get to this average - you can work out your Basis model.
It always depends how much you invested on the way down and how much you pumped in between 0.0003 - 0.0004
The formula is simple: the invested amount in the present range should be 70 % versus 30 %.
Actually the same strategies are played in the Options market when you Play around with nacked puts.
Sometimes, the action of somebody speaks more than every statistic could prove.
In this case of course we are talking about J&J/Lifescan.
Taken from the press-release: They have upheld Pharma Tech's legal right to manufacture and sell GenStrip while consistently maintaining that it's having done so has never, in any way, infringed on J&J/Lifescan's bellwether patent. We have repeatedly stated that position, the courts have consistently sustained it and Lifescan knows it. Their intent was never to beat us in court but to prevent us from selling the product while forcing us to allocate company resources for a legal defense of this spurious suit.
Using this when it comes to damage-compensation, will be a blessing for every lawyer on the side of DECN. Preventing somebody from selling a product means that J&J/Lifescan admits, that they are afraid, that DECN would grab a sizeable portion of the market share, J&J/Lifescan is in control of. What of course comes to it is as well: If you prevent somebody from selling, then you prevent somebody from planning . What you lose time in planning you lose in execution. So as a matter of fact when it comes to compensation, we would not be talking about 2 lost years but about 4 lost years.
J&J after having lost repeated times and now trying a last gimmick, will have a hard stand to explain to a judge, why all those winding roads of legal tricks and expenses for something, that they rate so low, based on their low offer to DECN for settlement. An offer that of course could not be accepted by DECN.
I would guess, that a judge could create an example for calling in a very high settlement amount, just to send out a signal to some big companies who see themselves above law just because they have unlimited access to funds. The message could then be understood that law and judges are not part of the system to be abused by trying to manipulate it just because of deep pockets . A strongly worded shot across the bows with a high Dollar figure could and would do the trick for the future of similar cases, were small companies never had a chance because of lack of funding.
DECN must be doing something right when I read the various USTPO verdicts against J&J. But then, reading the last press-release from DECN I feel again confirmed, that the Team of lawyers/advisers around DECN is in control of the script.
Reading this: Despite repeated legal losses that have effectively neutralized U.S. Patent 7,250,105, Johnson & Johnson/Lifescan have now opted to exhaust their final remaining legal option two weeks after we rejected their unacceptable settlement offers.
For everyone having passed second grade in School, this Statement says all.
J&J made an offer - and we all know, if you make an offer, then you must realise that you lost. A winner does not make an offer - only a loser, but then this is the usual bargaining basar. J&J is trapped.
The rest of the noise surrounding DECN is what has to be expected. Successful People have plenty of enemies or as my old teacher used to say, never Interrupt your enemy when he is making a mistake, he is working within his Limits.
Slowly but surely on the path of execution.
http://finance.yahoo.com/news/major-league-football-targets-four-130000396.html
Maybe your idea is not even that bad and certainly should be entertained.
What wonders me, since start December 1th, 2014 up to end of March, 2015 735 Mio Shares have been traded.
Who is collecting all those Shares and why?
2015-03-23,0.00,0.00,0.00,0.00,5960000,0.00
2015-03-20,0.00,0.00,0.00,0.00,100000,0.00
2015-03-19,0.00,0.00,0.00,0.00,502000,0.00
2015-03-18,0.00,0.00,0.00,0.00,5415400,0.00
2015-03-17,0.00,0.00,0.00,0.00,000,0.00
2015-03-16,0.00,0.00,0.00,0.00,000,0.00
2015-03-13,0.00,0.00,0.00,0.00,000,0.00
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2015-03-10,0.00,0.00,0.00,0.00,130000,0.00
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2015-03-05,0.00,0.00,0.00,0.00,1717300,0.00
2015-03-04,0.00,0.00,0.00,0.00,35840000,0.00
2015-03-03,0.00,0.00,0.00,0.00,4000000,0.00
2015-03-02,0.00,0.00,0.00,0.00,125567600,0.00
2015-02-27,0.00,0.00,0.00,0.00,6744900,0.00
2015-02-26,0.00,0.00,0.00,0.00,000,0.00
2015-02-25,0.00,0.00,0.00,0.00,4665000,0.00
2015-02-24,0.00,0.00,0.00,0.00,41305500,0.00
2015-02-23,0.00,0.00,0.00,0.00,1506500,0.00
2015-02-20,0.00,0.00,0.00,0.00,500000,0.00
2015-02-19,0.00,0.00,0.00,0.00,000,0.00
2015-02-18,0.00,0.00,0.00,0.00,23796000,0.00
2015-02-17,0.00,0.00,0.00,0.00,21730000,0.00
2015-02-16,0.00,0.00,0.00,0.00,000,0.00
2015-02-13,0.00,0.00,0.00,0.00,2162200,0.00
2015-02-12,0.00,0.00,0.00,0.00,225000,0.00
2015-02-11,0.00,0.00,0.00,0.00,33798200,0.00
2015-02-10,0.00,0.00,0.00,0.00,27850000,0.00
2015-02-09,0.00,0.00,0.00,0.00,15243000,0.00
2015-02-06,0.00,0.00,0.00,0.00,20886600,0.00
2015-02-05,0.00,0.00,0.00,0.00,42565000,0.00
2015-02-04,0.00,0.00,0.00,0.00,98795600,0.00
2015-02-03,0.00,0.00,0.00,0.00,000,0.00
2015-02-02,0.00,0.00,0.00,0.00,41520000,0.00
2015-01-30,0.00,0.00,0.00,0.00,10000,0.00
2015-01-29,0.00,0.00,0.00,0.00,350000,0.00
2015-01-28,0.00,0.00,0.00,0.00,100000,0.00
2015-01-27,0.00,0.00,0.00,0.00,1690500,0.00
2015-01-26,0.00,0.00,0.00,0.00,43085000,0.00
2015-01-23,0.00,0.00,0.00,0.00,54037600,0.00
2015-01-22,0.00,0.00,0.00,0.00,6115000,0.00
2015-01-21,0.00,0.00,0.00,0.00,725000,0.00
2015-01-20,0.00,0.00,0.00,0.00,112500,0.00
2015-01-19,0.00,0.00,0.00,0.00,000,0.00
2015-01-16,0.00,0.00,0.00,0.00,000,0.00
2015-01-15,0.00,0.00,0.00,0.00,000,0.00
2015-01-14,0.00,0.00,0.00,0.00,15019900,0.00
2015-01-13,0.00,0.00,0.00,0.00,584500,0.00
2015-01-12,0.00,0.00,0.00,0.00,110000,0.00
2015-01-09,0.00,0.00,0.00,0.00,000,0.00
2015-01-08,0.00,0.00,0.00,0.00,22978500,0.00
2015-01-07,0.00,0.00,0.00,0.00,000,0.00
2015-01-06,0.00,0.00,0.00,0.00,1000000,0.00
2015-01-05,0.00,0.00,0.00,0.00,24981000,0.00
2015-01-02,0.00,0.00,0.00,0.00,500000,0.00
2015-01-01,0.00,0.00,0.00,0.00,000,0.00
2014-12-31,0.00,0.00,0.00,0.00,4214900,0.00
2014-12-30,0.00,0.00,0.00,0.00,16000,0.00
2014-12-29,0.00,0.00,0.00,0.00,430000,0.00
2014-12-26,0.00,0.00,0.00,0.00,385000,0.00
2014-12-25,0.00,0.00,0.00,0.00,000,0.00
2014-12-24,0.00,0.00,0.00,0.00,221200,0.00
2014-12-23,0.00,0.00,0.00,0.00,252800,0.00
2014-12-22,0.00,0.00,0.00,0.00,65600,0.00
2014-12-19,0.00,0.00,0.00,0.00,000,0.00
2014-12-18,0.00,0.00,0.00,0.00,150000,0.00
2014-12-17,0.00,0.00,0.00,0.00,20110800,0.00
2014-12-16,0.00,0.00,0.00,0.00,1190300,0.00
2014-12-15,0.00,0.00,0.00,0.00,21750000,0.00
2014-12-12,0.00,0.00,0.00,0.00,40000,0.00
2014-12-11,0.00,0.00,0.00,0.00,2180000,0.00
2014-12-10,0.00,0.00,0.00,0.00,000,0.00
2014-12-09,0.00,0.00,0.00,0.00,130000,0.00
2014-12-08,0.00,0.00,0.00,0.00,505900,0.00
2014-12-05,0.00,0.00,0.00,0.00,427500,0.00
2014-12-04,0.00,0.00,0.00,0.00,1070000,0.00
2014-12-03,0.00,0.00,0.00,0.00,1765000,0.00
Thank you of thinking of me and the shrinking fortune, but it is only lost when liquidated. Presently my average is around 0.0004 and maybe I can bring it down to 0.0003.
One never knows - maybe one day there will be some paper collector (shortage in the Cellulose market) and bidding for my stake 0.0005 would not be a bad return.
And by the way, there are still plenty of bids in the market waiting to be filled. Wondering why they are just not going away?
A short time ago I speculated that we gonna have a nice spring season and this despite J&J’s last attempt to play a fools game when they filed an emergency motion for 60 days grace and then a second 60 days delay request. It Shows to everyone familiar with such games that J&J is really desperate. All what they will get out of it that at the end they will have to satisfy DECN with a higher Settlement amount. As a matter of fact DECN was right to refuse the first offer.
Wondering what the USTPO People think about this: Saying to J&J 3 times no and now J&J behaves like a child and turn against them. They won't take this easy, my guess.
http://finance.yahoo.com/news/johnson-johnson-division-attempts-final-132000443.html
Though wording indeed but it seems the this is the only language J&J will understand.
Sometimes one has to take a stand. My guess is, that MLFB is forming a bottom within the 0.15 - and 0.50 range. As I believe that MLFB will go Forward with their Business plan as presented in their Video-Conference early this year, the stock could become attractive to some. The Management is in control of 55 % plus and this should be Motivation enough to build the right alliances around them.
I-Hub System is down for the third day.
We've received word that a fiber cable cut has taken down ADVFN's Comstock feed. No ETA on when service will be restored.
(The last time it happened it took around 24 hours. However, we have no idea where the cut is or how long this repair will take.)
UPDATE #1: It appears not to be a fiber break, but an EU router in Level3's network. We're cautiously optimistic for a much quicker resolution.
UPDATE #2:At 5:36 AM EDT we were advised that EU Networks engineers remain on site working to replace the fiber. Some of the major market indexes and smaller international markets are being rerouted through a backup VPN, but the U.S. and other major markets require a much larger connection to the source (a pair of DS3's I believe).
UPDATE #3: Latest report is that the cable cut occurred in the middle of a large construction site and Health and Safety restrictions (a/k/a red tape) are delaying access and repair. No ETA has been provided, but I am not hopeful for a resolution any time soon, perhaps not today at all.
UPDATE #4 1:01 PM EDT 3/27:
Quote:
Dear Customer,
Following a review of the proposed temporary repair to the damaged fibre trunk it has been decided that the site construction company could not guarantee that once the cable was repaired it would not be damaged again during the course of construction works. It has therefore been decided that this poses too much risk to your services and we will instead effect a permanent repair by re-routing away from the entire construction site.
Our 3rd party provider have been given permission to undertaken emergency traffic management which allows them to build a permanent route, unfortunately this does mean that the Estimated Time of Recovery is now expected to be 28.03.2015 at around 03:00 GMT.
We will update you with any new developments. Please contact us should you have any further questions at this time.
Best Regards,
euNetworks Customer Care
I cannot see why this subject is brought up on a constant Basis.
First it is all part of the filings and second it as well explains the the Dilution.
For my part I do not distinguish between the Dilution coming through conversion of Preferred Shares or if Preferred Shares would not exist through the issuance of common Shares. The end result is the same: The outstanding goes up and that the O/S over the last 2 years rose by approx. 30 Mio is undisputed. Based on the last filings from the 3 Major holders it was actually easy to make the calculation of roughly 42 Mio shs O/S.
But then, what do you expect ,if you cannot generate income from Business due to the known Facts (or very Little income) however have to spend Money for R&D of new products, Commercials and more and of course as well have to cover part of the legal fees?
You either go into debt and this would be the end or you get financed through equity which of course will increase the outstanding.
But maybe it is forgotten here, that in case of a Settlement and I am talking here Dollars being paid, the advanced costs for this legal battle will then be included in the total compensation so the effect of the Dilution should be balanced if and when of course, the Money flow goes towards DECN and I have no doubt, that J&J will have to pay, but what nobody knows is the possible amount, but if one compares the costs involved by J&J alone for legal fees and of course by DECN for legal fees, then the amount being up for debate must be much higher than the involved costs.
J&J cannot in present in court their case for suffering millions of Dollars of damage if DECN would be allowed to have it's way and if it then Comes to compensation turning the Argument around. Won't work in Courts as we know from similar cases. Every judge would ask: Well why then did you start this battle?
If one sits back and recapitulates the last 2.5 years then one has to wonder, why there are still some around who believe, that the market for GenStrip 50 is not huge?
Why else should J&J Play all tricks - despite already having lost 3 times in court - and paying millions of Dollars for something, which based on some "smarties" is nothing or has no value?
Does not make sense at all, does it?
So then I am wondering, why J&J is not taking the advise of all those who let us all know that DECN has no product to write home about and has nothing to scare J&J and by doing so, saving them millions of Dollars in court and further humiliation in court?
I think it is not any longer about survival, this Point is cleared.
Patent exhaustion:
stopping the enemy
at the gate
There are useful measures to protect inventions in durable and
non-durable goods against parallel imports, says Susan Pan
http://www.sughrue.com/files/Publication/e2102668-3eea-4779-a633-7f1e6fb30230/Presentation/PublicationAttachment/8c039f86-839c-40f0-a1ef-80c0f7be1b16/90003000SuanPanMay2014.pdf
“The Federal Circuit’s decision
in Lifescan Scotland, Ltd v
Shasta Tech, LLC summarises
Supreme Court precedent related
to exhaustion of both apparatus
patents and method patents.”
Seems a very interesting business-concept where huge revenues can be made. In Europe and South-America already well tested with Football and supported by the FIFA a Gold Pot. If they do this with American Football, could be a Midas Touch. Will try to get some Information form the Company.
Covering 2 subjects with one mail to save time:
First:
The discussion was about a signed contract with Walmart. I think I was able to prove, that there was indeed a signed contract in my previous post. As this point had been cleared it is then not surprising that it would not end there, so I am glad to take it up as well.
The question was , if this contract would still be in place?
I would say no, as every contract has a term: subject to ………… If you cannot deliver within certain terms (and the reasons for this have been explained in detail ) then of course there is an exit clause for both parties. For Walmart as any other retailer, there are no costs involved in signing a contract as they are not out to build a special place for a product and neither are doing any promotion for a product unless of course it would be under their own brand or if they would get paid for doing so. But then it depends what kind of contract Walmart or any other retailer had or has with the client. A top name client like Red Bull or Monster if I may name 2 is even for Walmart a must to have them in their stores. So it is not always Walmart putting the string. Retailers want to have customers in their stores and they are smart enough to know, if the generation of Energy Drinks (to stay with this example) of a certain brand does not get it in Walmart then will get it with another retailer and once being in another store they may buy the rest there as well. Every marketing-fuzzy knows this. The worst what can happen to a retailer is when a Client turns his back on him.
But to go back to DECN subject: DECN should not have any problem to return to Walmart and work out a new agreement under the condition of course, that DECN would be in a position to manufacture the quantity and then of course both parties have to agree on pricing terms. I would guess, that DECN should soon be in a position to go back and start negotiations for direct delivery to certain retail chains including Walmart but then as well ready to negotiate deals under the terms of private labels. Such a decision to go Forward at all fronts of course is subject to the understanding: That orders could be filled or better said manufactured and then as well manufactered and priced in a way that allows enough leeway when it Comes to the margin.
But to have this said as well: Walmart is not the must any longer for sellers to get their product sold. The consumer world has changed and the shopping behaviour as well.
Second:
One comment was: For those who know Walmart they put clauses in their contracts that keep companies from issuing PR's because some small public companies have abused it and tried to increase their share price with PR's. "
On the contrary and besides to break-down this statement as fabricated I will as well quote a statement from somebody who deals with Walmart. Walmart as a matter of fact even promotes such kind of press-releases like any other retailer would do as well. If Walmart would be worried about share price PR from a seller, then they should not deal with those suppliers that are listed. I would guess there are plenty other billion dollar companies on this world who have so-called small cap suppliers and then this would mean, that all would put such a clause into their contracts. If somebody believes that, then one will believe everything.
Why: It is for Walmart the cheapest public relation and they do not even have to pay for.
Why do you think certain brand names are falling over each other to have their products sold through online stores like Amazon, Zalando, Ebay, Alibaba and more. It gives them a recognition their advertising budget could not carry worldwide and it serves both sides: The online store get’s free public relations from the seller and the seller get’s free public relation through the Web-presence of the online store.
Every company who has a contract with Walmart or any other retailer to have their products sold in the various stores is actually a walking advertising column.
The consumer of today and here I am talking about the early baby-boomers (IT generation) and the youngsters (multi-media) generation orients itself today through the world-wide web, where he can buy his products and at what price. It keeps competition under constant pressure to adapt to it. More and more companies therefore are covered through mobile apps. Designed to run on smartphones, tablet computers and other mobile devices. It was the public demand and the availability of developer tools that drove rapid expansion into other categories. The logic behind of course is to direct the consumer to the nearest store where he can buy his product at the cheapest price. Now if, based on your statement, Walmart would put a clause in their contracts that would keep companies from issuing PR’s of any kind, Walmart would close itself out of an explosive demand of customers. And Walmart is not known as being stupid if it comes to promote themselves.
I got some feed-back from a friend of mine that works for a company who is selling a certain kind of Energy Drink as well through Walmart. His comment: This made statement that Walmart has such a clause implemented is 100 % not true (and not true for every other retailer) on the contrary, Walmart supports any kind of public relation. His quote: With such a clause, Walmart would exclude themselves from a public- or advertising event of a product, because a seller as a rule will let the market know, where it can be purchased.
Not yet but the balance-sheet is kosher (if I may say so, because it is an Israeli Company)
Of importance:
At least they have the CE Mark
to be marketed and sold in 32 countries across Europe as well as in certain other countries worldwide. On March 5, 2014, MDSS, our
European Authorized Representative, completed the registration of the Dario™ Smart Meter with the German Authority as required by Article
10 of Directive 98/79/EC on in vitro diagnostic medical devices. We are currently pursing regulatory approval for Dario™ in the United States
and are expecting to receive clearance from the U.S. Food and Drug Administration on our 510(k) application by mid 2015.^
Going through the CE Mark process is time consuming and before you do not have it you cannot negotiate deals. I would say, as soon as they get their clearance from the FDA the market will know what to Price in.
The best is yet to come. This stock is all over the hedge-fund Pipeline.
$ 100 within this year?
The dispute about a contract between Walmart and DECN has it's basis that goes back to 2011.
DECN's 10-Q notes that the Company was approached by the largest retailer in the world, recentlyix revealed to be Wal-Mart by DECN President and CFO Keith Berman, regarding the sale of GenStrip at its 5,000+ stores globally. DECN reports that a contract was negotiated in September 2010 and subsequently renegotiated and renewed in April 2011. However, while conducting market research during this time and seeking pre-orders, DECN reports that initial market interest was greater than the product capacity of the Company's contract manufacturer, and the Company ended the pre-order initiative while remaining confident there is a very large opportunity for GenStrip in a market dominated by four large pharmaceutical manufacturers which DECN reports sell similar products at similar pricing.
From a legal point of view it is rather clear:
1.) A contract was negotiated, renegotiated and renewed in April 2011. This would mean, a contract was signed and dated however like always with a clause, that the contract could be re-negotiated if and when both parties would agree to it. (This is a common text)
You are not renegotiating and renew something if there would not have been a basis for it and a basis for it is a signed Agreement/contract. Without being signed and dated, a contract could not be valid and what is not valid cannot be renegotiated.
But that there must have been a signed agreement is confirmed as well by the wording: Renewed. And of course logic dictates you cannot renew something which did not exist and which would therefore have had no legal Basis.
So the text from 10Q is more than clear: There was a signed and dated contract between the mentioned parties.
Those who question the legitimacy of DECN may do so for their own reasons, but then it is not of importance, as J&J put the stamp of IMPORTANCE to the case and believe me , this is what counts at least for me as a shareholder .
The best reference about the quality of the Genstrip50 product (FDA approved) and the market potential comes from J&J or Lifescan. Who am I , to question this Multi-Billion Dollar company? Who am I, to challenge the statements from J&J’s lawyers, that if DECN would get away with it, they would be a serious competition to their market share of roughly $ 2,5 billion and who am I, to question even those legal minds, who covered this patent-infringement case in their Intellectual Property magazine.
http://www.sughrue.com/files/Publication/e2102668-3eea-4779-a633-7f1e6fb30230/Presentation/PublicationAttachment/8c039f86-839c-40f0-a1ef-80c0f7be1b16/90003000SuanPanMay2014.pdf
DECN must have done something right I guess, otherwise neither nor would have paid attention to it. As a matter of fact, DECN wrote Court-History.
“The Federal Circuit’s decision
in Lifescan Scotland, Ltd v
Shasta Tech, LLC summarises
Supreme Court precedent related
to exhaustion of both apparatus
patents and method patents.”
Since all started early 2013, DECN did not only attract the legal minds, they attracted as well some from the press who tried at that time – before the rulings were made in favor of DECN - to get a clearer picture of the consequences if and when DECN should survive this battle.
http://www.forbes.com/sites/genemarcial/2013/03/11/jj-faces-potentially-disrupting-competition-in-its-lucrative-glucose-monitoring-business-from-tiny-diagnostics-outfit/
http://www.forbes.com/sites/genemarcial/2013/09/11/jj-seeks-court-aid-to-protect-its-glucose-monitoring-test/
http://www.biomedreports.com/20131022158602/decn-set-to-climb-as-genstrip-enters-blood-glucose-monitoring-market-with-first-shipments.html
Of course as a consequence DECN became a litigation stock. How much will be paid and if it is amount x what would it mean for the stock and more. I have no idea, how much at the end will be in the account of DECN, but it will be certainly enough to emerge as a small company, debt-free and enough cash to fund the future. And as all who read the reports from the leading Wallstreet houses may know, the future for the industry to gather momentum and potential is in Asia and I guess, DECN to protect itself from unexpected challenges in the home-market and as experienced from the past-event and not to be hindered again to execute in this multi-billion dollar market could already have a strategy how to get this done. Welcome to Asia.
Just from a statistic point of view:
WHO Western Pacific Region calculates for the next 15 years a total of 370 Mio people with diabetes.
From this:
The Asian Pacific Rim - 75 Mio
The South-East Asia Region 120 Mio
In total more the 50 % in Asia.
You do not need to be smart to figure out where the biggest market potential outside of the USA is found and you do not need to be smart to figure out, where the biggest distributors have their jurisdiction.
Of course, DECN like any other company made it’s mistakes as a public company, but then it is not unique and even happens to the biggies. This from my point of view, although took longer than I thought, will soon be settled as well.
So actually we can look forward on 3 things:
- Some kind of settlement with J&J
- All filings out
- Presentation of the new DECN strategy with the hope that ASIA is fully covered.
At the latest then, DECN will be traded like any other stock: As a fully reporting company, with some cash in the bank and on the pad to generate substantial revenues.
Crashes in whatever market are bad for the blood-pressure. Looks the market want's to test the 2009 low. The only ones smiling were those who bought puts and wrote nacked calls.
Forums can have an effect best described as suggestive momentum. Similar to a bay that invites surfers, however angers those having a private property there. To keep the surfers away they put a warning there: Careful sharks, even when this bay never has seen a shark. But the effect of course pays – nobody will go surfing, but only those who are living there and know, there are no sharks.
The same effect we see, when one reads daily suggestive texts that are presented as questions leaving the proof to the contrary to others, but of course this is impossible, as the question is of no substance. But the effect is the same as with the surfers: Nobody will test if the warning is true or not and therefore this little sentence had the desired effect. And in forums such daily cascades have a desired effect as well for those who want to damage the reputation of the company.
But will it work? Certainly no – a la long it never works if the fundamentals are in favour of a positive outcome. But it works short-term as it keeps small retailers away or selling while the biggies who see the picture accumulate at every price.
And DECN is not a stock where the shorts can play a game on one hand due to illiquidity of the float and due to margin requirements which are too expensive for penny-stocks, this kind of group falls out. The biggies for sure are no part in this forum either as they have better things to do (except some putting their nose in for a good laugh). Could it then be, that people who have a “past” with DECN could use the forums as pay-back?
http://www.wikinvest.com/stock/Instacare_(ISCR)/Instacare_Corp_Ronald_Kelly
Reading this court-paper I would say; K.B. made himself not many friends, when he sued them in court in the name of DECN (former InstaCare Corp) and won.
They not only had to pay a substantial amount in Dollars , but then as well had to return roughly 32 Mio shares to the company. As a matter of fact, this case among others was partly responsible for changing the shares-structure.
This excerpt taken from the ISCR 10-Q filed May 28, 2009.
instaCare Corp. vs. Ronald Kelly, et. al. (“Kelly”)
the Company filed a complaint in the United States District Court, for the Central District of California (Case Number CV 05-4932-RSWL), against Ronald Kelly, Linda R. Kelly, Kimberly Kelly, and Kelly Company World Group, Inc., seeking damages for:
1.
Fraud;
2.
Declaratory Relief;
3.
Breach of Fiduciary Duty;
4.
RICO violations;
5.
Injunctive Relief;
6.
Conversion;
7.
Breach of Contract/Breach of Corporate Merger Agreement; and
8.
Accounting and Ancillary Relief.
Of course being caught and stripped off everything hurts and one does not have to wonder when they now use all what they have left to try to damage the company even with a paid cyber Scam-Alerts-program that now runs for months on a certain forum and in the meantime reached more than 120.000 mails. But then they even went further and used Hotstocked – who has been sued for fraud and found guilty and is operated out of the Balkan by some known names - Strange is then, that one known poster is linked to hotstocked and is giving heat on other companies – besides DECN – and most of those names are then as well covered by hotstocked. Indeed a very reputable connection as hotstocked company has been sued for fraud many times already.
http://ia601605.us.archive.org/15/items/gov.uscourts.ohsd.159815/gov.uscourts.ohsd.159815.2.0.pdf
Conclusion: We should not underestimate DECN. They have achieved more than could have been expected 2 years ago, when J&J sued them for infringement. And actually this court case for shareholders has been the best Due-Diligence with reference to DECN as you can bet, that lawyers turn every stone upside down to find weakness – and as we know, the only one who found weakness, was DECN as J&J employed a faked witness. In the meantime, we certainly will be entertained by those who have an “unfriendly past “ with DECN.
Looking Forward to a very postive spring-season for DECN shareholders.
One should not post old filings to Support something, which is totally wrong. The authorized is 500 Mio and not 1.750.000.000 which I will prove step by step.
This authorized figure was accurate as of September 30.2011 but then changed due to a RS
Capital Change=shs decreased by 1 for 14 split. Pay date=12/01/2011
One only has to read then the10Q as of 31.March 2012 to get the corrected O/S
Common stock, $0.001 par value, 494,950,000 shares authorized,
10,155,526 and 9,307,934 shares issued and outstanding
as of March 31, 2012 and December 31, 2011, respectively
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=8620358
And further:
NOTE 5 – STOCKHOLDER’S EQUITY
We are authorized to issue up to 494,995,000 shares of $0.001 par value common stock and 5,000,000 shares of various classes of
$0.001 par value preferred stock. In March of 2011, we amended our preferred stock designations as follows: 1) withdrawal of Series
“A” designation on 750,000 shares of preferred stock, 2) withdrawal of Series “C” designation on 1,000,000 shares of preferred stock,
3) Designation of Series “B” on 2,500 shares of preferred stock and Series “C” on 10,000 shares of preferred stock, and 4) increased
the number of preferred shares designated as Series “E” from 1,000,000 to 1,250,000. All presentation of preferred stock contained
herein has been retroactively presented to reflect the 2011 amendments.
Series “B” convertible preferred stock
We have designated 2,500 shares of our $0.001 preferred stock as Series “B”. Holders of series “B”: convertible stock shall not have
the right to vote on matters that come before the shareholders. Series “B” convertible preferred stock may be converted, the number of
shares into which one share of Series “B” Preferred Stock shall be convertible into common stock shares shall be 50. Series “B”
convertible stock shall rank senior to common stock in the event of liquidation. Holders’ of Series “B” convertible stock shall not be
entitled to a mandatory monthly dividend. Series “E” convertible stock shall have a redemptions price equal to 101% of the purchase
price per share, subject to adjustments resulting from stock splits, recapitalization, or share combination.
Series “C” convertible preferred stock
We have designated 10,000 shares of our $0.001 preferred stock as 2011 Series “C”. Each share of 2011 Series C Preferred stock is
valued at $10,000. Holders of series “C”: convertible stock shall not have the right to vote on matters that come before the
shareholders. 2011 Series “C” convertible preferred stock may be converted after 36 months, but not before, the number of shares into
which one share of 2011 Series “C” Preferred Stock shall be convertible on a pro-rata basis into common stock shares, each share of
common stock valued at $.50. 2011 Series “C” convertible stock shall rank junior to all other classes of Preferred stock in the event of
liquidation. Holders’ of 2011 Series “C” convertible stock shall not be entitled to a mandatory monthly dividend.
Series E convertible preferred stock
We have designated 1,250,000 shares of our $0.001 preferred stock as Series “E”. Holders of series “E”: convertible stock shall not
have the right to vote on matters that come before the shareholders. Series “E” convertible preferred stock may be converted, the
number of shares into which one share of Series “E” Preferred Stock shall be convertible into common stock shares shall be 14. Series
“E” convertible stock shall rank senior to common stock in the event of liquidation. Holders’ of Series “E” convertible stock shall not
be entitled to a mandatory monthly dividend. Series “E” convertible stock shall have a redemptions price equal to 101% of the
purchase price per share, subject to adjustments resulting from stock splits, recapitalization, or share combination.
Preferred E Issuances
During the three-month period ended March 31, 2012, we authorized the release of 124,700 shares of our preferred Series “E’ stock to
Alpha Credit Resources for accrued interest totalling $80,483.
During the three-month period ended March 31, 2012, Alpha Credit Resources elected to convert 21,000 shares of their preferred
series “E” into 294,000 shares of common stock.
CONCLUSION: DECN CANNOT GO ABOVE 500 MIO SHS AS STIPULATED UNDER STOCKHOLDERS EQUITY.
FORMULA: 494,995.000 SHARES FROM THE COMMON STOCK AND 5.000.000 FROM THE VARIOUS CLASSES OF THE PREFERRED.
GIVES A TOTAL OF 499.995.000.
And another advise: The so-called conversion rights for the various series of Preferred are visible on the filings, so there is no hidden Agenda.
Well nowadays work for accounting, Reviews and auditing can be outsourced. There are many cloud-based Technology and managed Services Providers/Centers available to the industry that are doing the Job for you.
In a Business like AAPT is in, the only place they would Need is for production and even this can be outsourced. So-Called show-rooms could be outsourced as well and the selling-team could work from home. The trend is for delegating/Outsourcing and by doing so, reduce staff, safe costs and more.
If you think of it: Even the financial industry in Europe has outsourced their IT-Departments to the Eastblock, because on one Hand of cheaper Labor but with highly talented People. Some US-Banks outsourced it to India and the US-Credit Card Giants did the same.
Going backt to AAPT, what is then left: 1 Office with 1 presence, that would responsible as co-ordination Center. Maybe AAPT is moving away from CA to another place and with it changing as well the juristiction. Who knows - all is possible.
But, as I wrote in one of my previous Messages: Those who bought almost the entire float must have a strategy in mind, which of course covers as well the subject filing. Unless of course, those buyers just wanted to throw $ 400.000 or $ 500.000 out of the window. Maybe - maybe not, but all what we can do; wait to see what the future has in store. On this subject I am not smarter than you, just a neutral and interested by-watcher.
From time to time, in front of your nose is something, which by a closer look is value.
Take DECN as a new starter and exclude for a moment, that the company is involved in settlement discussions which will bring some $’s to the table.
What we know is, that the Strips market share from Life-Scan is roughly 2.5 billion.
1% would be 25 Mio. Now based on the formula from related companies, the Earnings per share model shows P/E ratios from the low 18.50 to the high 43. Some of those companies are not even profitable and therefore have a so called Revenue-Ratio with rather wide spreads as well from 3 up to 6.5
If I am right, then DECN would be profitable with a net-earnings profile of 15 % and taking 1 % market share or 25 Mio, produce a net figure of 3.75 Mio $. If we allow here the low-end of the P/E range of 18 then this would be equal to $ 67 Mio Capitalisation or ratio based on revenues 2.66Breaking this down with 45 Mio O/S then we talk about a stock price of $ 1.40
As we all know, markets are forward looking and those constantly accumulating at whatever price in a very orderly manner, know what they are buying. Momentum will come into the stock, when and why, I will leave open: But as DECN announced recently, the company is preparing itself to move forward not only with 1 product but then as well with something else. As soon as this becomes more visible, the stock and the company will leave the old legacy of a “patent-infringement-stock” behind and enter a new time cycle.
Whatever will be paid from J&J does not matter very much to me, but it will have a special meaning in the market and as well to the media who will certainly cover such an event.
What will be the meaning:
1.) That this little company had the Chutzpa to go against a giant and won
2.) That the settlement figure could present a 3 years average of net earnings (as an example here)plus some damage fees and based on this then the market could and would adjust a growth rate.
3.) That the settlement was a the very low end of the net earnings-estimate which could even add to the momentum as one does not have to be smart to know, that over time DECN would certainly go over the 1% market share.
4.) The company would have cash at hand to finance their announced new business plan and would have no need to tape the market for debt or equity.
Conclusion: At 0.20 it is actually a non-brainer , but it will soon become clearer to all. And frankly I do not care about the dilution as this was visible over the last 2 years and from the recent filing we know where we roughly stand. 45 Mio O/S. But then, how does one think the company would have gotten financed in this legal battle and actually barred from generating revenues? Money is not for free on Wallstreet and therefore those who financed the company will certainly cover their investment by selling. Fine with me: I am not interested on this side: I am interested on the buyers-side and let’s be fair, DECN had no problem to have the selling absorbed in a very very orderly manner. One they this selling pressure will be gone, because DECN no longer will need financing, they will be their own bank.
Maybe it is pathetic, maybe not, but then you can only lead the horse to the water, but not force it to drink.
In Business it takes 2 for a Tango and when right measures would have been taken 2 years ago, a disaster could have been avoided. I did not have to be and so there is a new "try" and again, either it works or this is it. Detroit as City and some of their companies could sing a Chanson about such things.
But at the end: The buyers of those Shares are risking their own Money compared to those who pretend to know all better but then take no risks.
How it will work out - if ever - is written in the stares, but like in poker, if you are not taking the risk, you never will find out if you would have taken home the pot and those who over the last 3 months purchased almost all the float out of the market, are taking the risk.