NetList Inc (NLST)

[papaphilip]

There is much to be hopeful for. Netlist has a bunch of litigation wins behind them and should be successful with appeals and the current regulatory guidance is look much better for patent holders. Netlist is still actively developing new technologies that will be needed in abundance by the world.

But our stock price doesn't reflect this and I often wonder why. I know the rest of this post won't go over well with longs, but here's a scenario I've wondered about. Thankfully Netlist currently has a royalty agreement with SK. We all know (as does everyone else) that this relationship is extremely vital to Netlist. If SK wasn't paying us, would Netlist financially survive? For how long? How much financing/dilution would be needed? So I think the importance of SK agreement and it's upcoming agreement renewal (next year) is vital. But Samsung, Micron, and Google all know this too. What if Samsung and Micron made and agreement with SK and gave them $150 million each as long as SK doesn't renegotiate with Netlist, and stops paying Netlist any royalties? I know this sounds ridiculous and far fetched, and very unethical, but we know these companies are unethical with regard to stealing patents. In such a scenario litigation payments would go up a bunch due to adding SK to the list of companies to seek damages from. If such a thing happened might Netlist eventually go bankrupt or have it's price driven price to pennies, thus causing all lawsuits to extinguish/expire or at least making a long term deal or takeover all that much reasonable and sweet for any of the infringers? I agree this seems silly and unlikely. I mean SK could stop paying now already and not even get to the renegotiation. But it's one of the possibilities that would be a reason for us remaining at this price level, and if SK doesn't renew it's agreement, cause us to drop much further.

Sorry, hate to be a downer before a holiday. I just always try to see both sides of the picture. The shorts certainly believe, it's just a question of what do they believe, and if they might be right. They have been for the most part for the past 2 years.