Present value analysis
If you really believe the simple set of numbers I presented are how things going to go, and do not need to be modified or any percentages applies to any steps of the legal process or hurdles that WDDD will have to overcome to get $300 million, then you should buy as much as possible.
You will recall, my main point was to show and illustrate that the case taking years to complete did have a big difference on the present value per share.
One of my assumptions was that the shareholder count was around 200 million common shares to the end of the case, but as we have seen from the recent S1, we can expect the company will need to continue to issue 20 or 30 million shares per year in order to stay in business and keep going, which will drive the present value per share count down.
In order to use the framework I presented, one needs to discern what the final judgement amount will be, plus they need to come up with an expected year that such a payment would be made to WDDD.
I seem to remember there was a patent litigation case with a company in Canada that took about a decade before any money was paid. (Blackberry or Nortel I think was the case winner.)
Louis J. Desy Jr.
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