Worlds Inc (WDDD)

[MarkmanRunup]

Top 10 reasons I like WDDD. #10 Fear

This series will be presented over the next couple of weeks. Let’s start with #10...



#10 Fear

A wise man once said:

“Be fearful when others are greedy, and be greedy when others are fearful”—Warren Buffett

A lot of people are afraid to invest in WDDD right now, and they have their reasons. Take for example the recent motion for summary judgment filed by Activision on June 18:

http://www.scribd.com/doc/149055228/WDDD-SJ-Motion

In their motion, Activision claims World’s patent portfolio is improperly chained from one continuation patent to the next, and therefore since the earliest parts of the chain were broken, World’s early patents invalidate their latter patents. That’s one scary motion for summary judgment! If Activision is right, then World’s whole portfolio is worthless, and we might as well move the stock price to $0.00 and call it a day.

After the motion was filed, I spent several hours doing my own research to determine if Activision had something up their sleeve. Alas, research showed that what Activision was attempting via their motion had already been tried before against DuPont:

http://scholar.google.com/scholar_case?case=7600470976941784730

In that case, DuPont ended up prevailing, and the motion for summary judgment was denied.

But that wise man also said:

"There is no comparison between fear and greed. Fear is instant, pervasive, and intense. Greed is slower. Fear hits."—Warren Buffett

And the fear hit WDDD. It doesn’t matter to some that there’s a strong defense against such a baseless motion. Many wanted out, and they wanted out now. “Fear is instant, pervasive, and intense.” On the day Activision filed their motion, WDDD was trading at $0.44/share. Within 4 trading days, WDDD was trading at $0.24/share. Fear hits, and it hits hard!

But something else happen almost exactly at the same time Activision filed their motion for summary judgment. Worlds was informed by the court that the Markman Hearing originally scheduled for June 27 had to be rescheduled to August 22. While not as fearful as having the entire patent portfolio nullified, this delay wasn’t what some traders wanted to hear. They wanted out, and now.

It’s true, justice delayed is justice denied. But hey, courts need to prioritize their cases: criminal cases first, then civil cases. Maybe the Markman Hearing will be postponed even further, but the question I ask is: does this delay fundamentally damage WDDD, or does the fear generated create a buying opportunity for me?

The motion for summary judgment and the delay of the Markman Hearing has created fear. Fear that almost cut WDDD in half. “When others are fearful,” what did that wise man say I’m supposed to do?