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Tuesday, June 04, 2013 1:58:27 PM
In laymans terms what is going to happen after markman ruling. What kind of split etc. lost,thnks.
First, I believe that Kidrin has publicly stated that any RS would be after the successful Markman AND litigation of ATVI. As such, I don't believe the RS to be imminent unless ATVI settles pre-trial.
Effectuating an RS w/o a clear ATVI victory in hand is pointless because if WDDD uplisted prematurely and then the trial outcome is in favor of ATVI, then WDDD goes back down into the gutter where it will stay forever.
A RS only makes sense AFTER a complete favorable resolution to ATVI, which WDDD can then springboard into an uplisting and then enter its next phase of growth.
That being said, the RS ratio will depend in large part on how the market reacts to a favorable conclusion to ATVI. If the sp is higher than $2, then I would expect a RS of only 1:3. IMO (and IMO only) the RS should only be the smallest ratio necessary to get the sp comfortably over $5. This enables an uplisting to a senior exchange. And just as importantly, being comfortably over $5 opens up WDDD to the entire univers of broad-based mutual funds instead of the smaller segment of HF's that currently buy/trade it now. And keep in mind as well that the HF's who buy WDDD now are mostly trading it, whereas the mutual funds who buy it later will more likely be holding their shares -- thereby bringing stability to the sp, which is a natural part of the evolution of a company from simply being a speculative bet to a true investment.
But first things first: Get a favorable Markman opinion. Without it, WDDD craters and a RS will be the least of any long's worries.
But again, this is all JMO, so take it FWIW...
