Gary,
it goes on the decline because of the burn rate not because of the R/S.
Are you familiar with factoring? WDDDs trades on the 'future value' of an expected outcome as we move through the legal process of collection.
With each win (MSJ, Markman, IPR, CAFC) the intrinsic value* increases. This could actually accelerate better after a R/S with the smaller float** (proportionately) and as target prices are met, the audience of available investors gets larger and upgrades to better exchanges occur.
Companies use R/S to finance their ongoing burn rate. WDDDs has now over 2 years of cash (Warchest). Having this $ removed uncertainty around how CAFC would be paid for and should offset the 19% dilution that occurred to get it (intrinsic value). That's why I added more.
Inefficient markets allow for market value to not reflect intrinsic value. You can smell these usually by the numbers of Pumpers/Dumpers screaming on Message Boards to motivate those less familiar (retail investors) to get what they want.
But if you want to sell, don't let me get in the way. The long term members on this Board know what they have here.
Just remember 'Three Feet From Gold' by Napoleon Hill
for those who don't know:
*Intrinsic Value:the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value. Additionally, intrinsic value is primarily used in options pricing to indicate the amount an option is in the money.
** Float: refers to the regular shares that a company has issued to the public that are available for investors to trade. This figure is derived by taking a company's outstanding shares and subtracting from it any restricted stock. (Restricted stock is stock that is under some sort of sales restriction: for example, stock that is held by insiders and cannot be traded because they are in a lock-up period following an initial public offering.)
