InvestorsHub Logo
Followers 3
Posts 7
Boards Moderated 0
Alias Born 10/17/2017

Re: None

Tuesday, 10/17/2017 1:55:20 PM

Tuesday, October 17, 2017 1:55:20 PM

Post# of 235052
I've been following this message board without contributing for well over a year. Have just kept it part of the due dilligence on my part. For the record, I own about 1.5mil shares of SFOR, and have been in the stock for about a year and a half now.

I think a lot of folks here need to understand the stock better before overreacting and worrying about the stock price. Being a penny stock, the movement of this stock will undoubtedly behave differently than say Amazon, or other larger dollar value stocks. SFOR is cheap enough that large traders can buy large quantities of the stock for minimal risk. If you watch the B/A spread, and the level 2 quotes, you'll see that many of the trades are in standard 10k lots, which typically resembles manipulation.These large traders buy a bunch, eat small losses by selling these small 10k lots at decreasing prices, then buy more. This allows for them to play the stock long, and hedge their risk exposure in the short term by providing many entry and exit points with small percentage gains.

ANY price movement from the $.02 range from now, until more news, or the settlement is released is just "noise". I couldn't care any less if, without hearing any news, the stock price falls to $.0000001 (actually, I hope it does, so I can buy more). The best thing you can do is buy more if it gets cheap, and ignore it if it goes up (unless you're looking to cash out). I see the biggest benefit profit-wise in this stock being when several settlements follow one another. This is not a $200/share stock. Unless Kay does several reverse splits there are just too many shares to do that. I suspect at some point when they uplist they will do a reverse split of some sort to bring the share price up, and eliminate the momentum traders that dominate this stock during high volume times.

The only true risk facing the SFOR shareholders at the moment is the possibility of a "less than we expect" settlement coming in. If the Entrust suit ends up being $15m, the market will not like that due to all the hype that has been being built up around the possibility of a massive settlement. However, even if the price drops after hearing this, it does not change the outlook of SFOR. Many of these litigation companies have made entire industries out of the patent infringement tools they provide. It is not likely for Entrust to forfeit its entire business line as a result of this settlement (same for Duo, Vasco, etc.). What I feel is the best we as shareholders can hope for, is for SFOR to win a nice settlement to get operating cash and pay down debt, but also enter into a high royalty agreement with the infringers so that it can ride along with their revenue, which in most cases is in the hundreds of millions of dollars. SFOR has cash now, and will have a revenue pipeline for the foreseeable future. Simply receiving cash in a settlement is going to result in a pop, and a decay once the hype dies down.