Dear Ms Understood
You are asking good questions but they are very hard to answer as the company is not very forthcoming with informations investors want to hear to make informed investment decisions.
An update on production of the cards would be welcomed by the investment community but as I have mentioned before in one of my posts, the last news release we had from the company has been late last year
It would be helpful too for the company to better inform the market about the next steps re the infringement issue.
At this stage investors ( current and potential new investors) are left in the dark and that is reflected in a lingering share price.
As a long term investor I have kept a close eye on the news releases and I have tried to stay informed by doing research on the internet. That research gives me confidence that the company is still on track ( lease of manufacturing fascility, office in Tel Aviv contracting engineers etc) to move towards production.
As with the legal issue, I share Ms Hendrick's enthousiasm about the Appeals Court ruling. I do believe this was a win for Smartmetric and a loss for Visa and MC. SMME is now in an even better position than it was in December 2010 when one of the credit card companies offered to settle ( see news release by company in Dec 2010).
If the infringement case is resolved through settlement ,I strongly believe the share price will trade at many multiples of where we are trading now.
I base my believe on a comment by Ms Hendrick posted on Seeking Alpha indicated that the company was seeking a substantial amount in lost revenue/damages. The comment did not mention a future licencing agreement ( to get an idea of a future licencing claim, I made an assumption that the damages sought were the sum of the years the patent was infringed i.e. 8 years which would result in substantial future revenue if awarded)
( Btw. I withdrew my post with this comment after the comment was replaced by a reviced comment with less detail about claims and future legal action as I assumed the original comment a case of having hit the sent button by accident and was not meant for public viewing)
Rather than relying on a good outcome of the legal case , I would much rather see that the company starts to create revenue through production and sales of the cards and that a possible positive outcome of the legal case will be the icing on the cake.
To be truthful, with so many unknowns, I find it hard to put a dollar value on the share price.
Hope this was helpful
R.
