NetList Inc (NLST)

[Daylas]

I do think settlement is coming for many reasons..

1. Micron did settle with the Chinese company recently in regards to infringement

2. NLST will or has offered them a fair deal probably 100M a year in royalties.. and 25m shares at 3 bucks.. NLST stock goes to 20 and micron makes money ( in 2010 micron paid Rambus 40m a year..14 years later they have renewed the contract twice)
100m would be inline with that deal…

3. Micron is raising prices on Dram and the HBM products are selling off the shelf at much higher margins… giving them the extra 2-3% to justify paying NLST

4. Micron stock is near 52 week highs and expects to break records in the next 2 years

5 micron has put up very little defense in these PTAB hearings and they continue to ask for STAYs knowing .. there is no alternative to NLST patents

6 almost all microns sales have NLST tech in them.. if NLST is successful once… they will be again and again.. cleaning this up before it gets away from them is wise..

7 micron is likely to get half the damages Samsung did of 303m. That’s 150m probably for 3 years back to 2021adding upto 450m…

8 NLST has a better case in April with the 912 being validated and in the courts for 15 years. What do you think a jury will say then?
9 the 314 has been validated by the PTAB. And its children patents are also in April.. so that adds more value there.. probably another 400-500m
10 I have little doubt that micron knows the royalty rate for Samsung which is likely 25m a month accruing as we speak.. so micron could bethinking that will be around 12.5 M for them.. point is .. if they appeal.. and when they lose is a year.. the number goes from 450m to 600m and that’s Without the 912….
11. Whoever comes to the table first gets a great deal.. if micron settles. NLST has the money to stick it to Samsung and Google bigtime…

Do you think the price tag will go up after a jury awards NLST atleast 150m? If the judge says back to 2021. Which I think all parties know… so after the Jan 19th-26th trial when NLST wins… imo the price doubles…

then we have less then 3 months for something bigger.. and when NLST wins in April… they can’t go to the cafc for appeal as NLST will have won at the PTAB and the district court…


So my simple logic is take a deal where you can make money.. or in a year be vulnerable to 1B in damages and another 500m in future royalties…