Replies to post #27180 on Decision Diagnostics Corp (DECN)

[1mort]

"death spiral"

Been waiting for the promised land to buy more - another promise - that will not happen - lol GLA

[DrZem]

JNJ isn't 100% responsible for the effectively hapless and moribund DECN. Indeed, the promise of a settlement from JNJ is probably the only thing keeping DECN from plunging to the sub-penny level.

It appears that the above quote is trying to make the case that JNJ is not culpable for DECN's inability to expand its business. But almost all of DECN's business expansion problems are due to JNJ actions.

JNJ sent letters, designed to make DECN products appear to be patent infringing, to all of DECN's major potential customers. This act of intimidation, effectively forced most retailers into a "let's wait and see" mode (i.e. it strangled most of DECN's potential market).

So if someone is trying to attack a small, potentially very disruptive competitor, what do they do next. JNJ chose to try to sue DECN into oblivion. The combined pincer attack of choking off their revenue stream and dramatically increasing DECN's legal expenses looked like an infallible strategy. That of course, assumed that JNJ was able to delay the legal process beyond the point where DECN was forced to declare it was insolvent.

To JNJ's chagrin, it appears that DECN has weathered their onslaught. The final play starts on December 8, 2015.

I'm betting on DECN.