Replies to post #23914 on Worlds Inc (WDDD)

[StockAlphaDave]

Basic valuation here based on your numbers - interesting insight. I would think it would actually be a higher percentage based on a past article I shared along with the "materiality" of the patents, amount of revenue and the acrimonious nature of what has occurred.

That being said, I plugged 5% into my valuation and this is what I get incorporating ATVI

ASSUMPTIONS

A. WDDD gets the six year issue corrected - fair as District Court effectively agreed it was a clerical error

B. "Average" Revenue of ATVI of 1.3 Bn past six years

C. 5% of revenue for damages

D. 35% to legal

E. 30% tax no accounting for any tax losses

F. 3x treble damages

G. A small amount of additional dilution factored in assumed 235 mil shares outstanding

After accounting for all that NET cash to the company would be around $445 million

Per share cash value per share $1.88

Apply multiples "net cash or earnings" to account for other infringers

1x - $1.88

2x - $3.76

3x- $5.65

4x - $7.53

5x - $9.41

10x-$18.82


Now I am not forecasting what the future share price will be, as one can go blue in the face arguing how to discount for risk, time value etc.

The point of this exercise is simply to point out what the "potential" is here based on factual information and then ask oneself is the company trading at a $12 mil valuation ($0.055 cents per share) reflecting a fair discount to its potential given those risks?

I would suggest given:

1. our position with the patents - ptab approved material claims with "broader claim construction than the courts)

2. Factual information that supports a fair expectation of treble damages

3. Strong markman claim construction and going into DCOURT and CAFC that is more "restrictive" and generally beneficial for patent holders

4. A CAFC that has for the last year plus been very hard on the ptab in addressing overreach


Given all of that and the risks - I would suggest we are undervalued

Now, at this stage the stock is always going to be "traded" as many penny flippers believe they are able to "time" the market and get in and out for the big moves. To each their own strategy - my view is simple and why I bought a boatload at 1-2 cents and have added materially- stats show you can't time the market, so I'd prefer to be in low and be patient (and it minimizes risk).

Good luck!