Imagine I would be a novice and take some time to reappraise the last 3 years but not based on comments on forums but based on what is available on court papers and in some legal papers covering the case.
I would then have to say: I am very much perplex that this company survived all or better said, that DECN found investors financing them through this cycle. Based on the changes on the O/S over the last 3 years it is obvious that they got financed but not through debt but through equity so no toxic momentum in the balance sheet. This for itself would make me wonder, because it is hard to find investors backing a small company involved in a litigation struggle versus a well known AAA company. But as a matter of fact it was done and based on this I would say, those backing DECN must see something in this management others do not want to see and they must as well be of the opinion that the light at the end of the tunnel is the sun and not a train coming against them.
The cumulative findings of course speak a clear verdict: J&J lost – and lost big. It is not about the amount they will pay when I say big, they lost a case which already is part of some legal dissertations. Then it is clear that J&J offered to end this case and settle and pay – the question of course in the forums is the amount. But the amount as such is not of importance as such although, it will be big enough to make DECN one if not the only Pink company, showing such kind of cash once paid in.
Then as a novice I would as well have seen the announcement about Korea and I would say, the logical step this company has taken to open a new chapter. But then as a novice I would as well have to admit, that during those 3 crazy years the company of course was not exactly in a position to keep their time table on track and this again of course would be the confusing element. How can you issue a statement “forward looking” and then not execute? Well , as in every other business or regular over the desks from politicians: Some announcements are being fulfilled – some not and then we have some who became famous with the expression: Read my lips -. Would we then say, that the latter 2 groups have misled the people? Of course not - or as somebody smart once said: Only a Pharisee is infallible.
Based on this conclusion: If I would be new in this game, I would become a bull on DECN, but as it is known, I am in this game already for some time and guess what, I am still bullish. The dilution process which of course hurts the stock price but helps the company going through this cycle will soon come to an end. And then we will talk business – and this will include, settlement, Korea , private label deals and then some.
