Finjan Holdings Inc (FNJN)

[lbcb123]

This company has never had better fundamentals.

The market doesn't look to the past and looks to the future. Their top two money-making patents expired last year. Symantec is now in the past and not revenue to be booked in the future.

There is a difference between one-off revenue and recurring revenue. They are running out of people to sue and future cases will be worth much less. Not only are their main patents expiring or facing competent challenges, the appeals court threw out their method of computing royalties at $8.50/user. That, alone, cuts their portfolio by a huge percentage.

The buyback program is a sham. It was used to throw away money on overvalued shares in order to allow Hartstein and Noonan to sell their personal shares at ridiculous prices above $5. Why wasn't Finjan buying back shares at $1.50 when they were sitting on $40M cash and knew Symantec settlement was forthcoming? Instead they bought back shares over $5 in order to allow insiders to bail at the top.

They continue to burn cash while running out of ways to replenish it. The gig is up.