Finjan Holdings Inc (FNJN)

[lbcb123]

It is in the first round of post-trial motions that you often see the amounts adjusted downward. Finjan survived this round in both the Blue Coat and Sophos cases. Blue Coat was a $39.5M judgment and pre and post-judgment interest was granted. If you haven't been following the industry, Blue Coat was acquired by Symantec not long ago. A bond was posted for over $40M to guarantee the payout in exchange for Finjan agreeing not to try to collect until after the appeals process ran out. This will happen in the second half of next year. Finjan has used a number around $46M of what they expect to collect when the extras are tacked on.

Sophos will need to file their appeal soon if they are planning on going that route. There is still hope of a settlement if they don't appeal. I think it would make sense to take $12M cash now if they don't appeal. Anything less and keep it in the pipeline to get paid plus interest in 2018.

They have over $200M in potential revenue from other pending cases and confirmed they are in talks with around 25 others at various stages to do licensing agreements. They recently stated they were in late stages with 4 of them and "could" see multiple license deals by the end of the year. One is pretty much assured any day now and I would be happy with one more in December and two in the first quarter of 2017. Once again... they already have enough cash to implement their business model and this revenue from licenses will allow them to grow their business units more quickly.

Gen 3 of mobile browser is getting extremely great reviews which is causing them to release gen 4 shortly which will be the first to generate revenue. Previous versions have been free downloads. Finjan Mobile is going to fuel broader exposure for them and CybeRisk has potential to grow as fast as they can find top people to take on new clients.

I am usually the "contrarian" when doing due diligence. I have combed through this trying to find the major flaw and can't come up with it. I welcome you or anybody to share what I may be missing. I'm not a cheerleader type and would love to be made aware of the negatives.