Replies to post #4841 on WordLogic Corp (fka WLGC)

[phrantic]

That's really a guessing game trying to pin a value on WLGC at this point. I've stated prior that I believe $2 - $3 is very possible and still hold that opinion. As for legal probabilities governing SP, emotion has always been the governing rule for OTC/Pinks 99% of the time. Once the dust settles and emotion wanes then true value comes to the surface. Seeing names like AAPL, Google, RIMM, etc in print will create a feeding frenzy IMO. Usually demand letters are given 30 to 60 days for responses, so we should be hearing something in that regard in the not too distant future.

[Chinnery]

Fair valuation on a company with no revenue is an inexact science at best. WLGC has an opportunity to earn licensing fees (on apps or IP) going forward, plus direct to market sales. I would focus only on the former because they neither have the sales or distribution channels to sell much direct to consumers and business.

Looking backwards, there is potential of settlements for past infringement, but I would assume if any, that would be distributed in the form of a special dividend and not impact valuation going forward.

So fair market value would be up to the market determining what price any future revenue / profit stream is worth. If you use a PE of 20x earnings, then to get a $2 valuation on 75MM shares, we require $7.5MM in earnings. Assuming our annual costs would be approx $5MM to run Wordlogic, revenue of $12.5MM would be required, or $1 per device with 12.5% market share in N.A.

The above numbers work, but this is not a "market share" story, but an "all or none" scenario. Either Wordlogic patents hold water or they don't. Land one whale, it probably means all must play nice.

Dell and possible app sales (eg Droid) are separate and potentially just some added gravy. Patent infringement is the key to a multi dollar stock imho.