LOL's Picks

[LOL]

New info has been attained and I changed my position on WDDD

First, the float being 20-25MM makes it an easy mover compared to its predecessor's, VRNG and PRKR. Also, the dilution overhang from the past few years has been eaten through now. Another thing to notice is that a simple blog article moves the stock big, what will happen when real articles start to be written about the stock.

Some highlights from the 2 blog articles:

Question: How many claims of infringement are you making against Activision Blizzard ?

TK: There are 59 claims across five patents.

That is HUGE, 59 claims are going to be hard to beat, even if they beat half of them that's still a winning trial for WDDD.

TK: Susman Godfrey spent nine months reviewing our case before they came back and said, "We'll take it." They had a team of experts extensively review our patents and prior art work

Another big plus, Susman Godfrey really did their DD, 9 months is a lot of DD before putting their own time and money behind the case.

TK: After Thursday's filing, we have approximately 82 million fully diluted outstanding shares and the float is somewhere between 20 to 25 million.

TK: Based upon the MMOG market size of well over $12 billion

The MMOG market is $12 Billion per year, even if WDDD only gets 1% of that as a royalty, that's $120MM per year, with a 10P/E that's a $1.2B market cap, or about $15 per share, and that's only future royalty not past damages, at 34c the stock is well worth the risk.

Mr. Kidrin was forthcoming about this issue, and stated that he believes the major social networking sites are also infringing on some or all of these patents.

This one is HUGE and has been largely ignored!

In conclusion, with 5 patents and 59 claims, Activision Blizzard has their work cut out for them, my guess is they will settle sometime between the results of the Markman hearing and the trial. WDDD needs to get other lawsuits initiated ASAP because the issue of laches will come up in future lawsuits, and there is only 6-7 years left over on the patents. I would say look to VRNG and PRKR for price comparisons on where the stock is heading, as they both have similiar share structures and future possible revenues. As always, people should do their own DD.IMO