Replies to post #4360 on MSGI Technology Solutions, Inc.(fka MSGI)

[PrimeTrader]

enlyten - imo - the court case is a moot point. Most likely any settlement will be delayed until right before the trial date in late 2012. There is little incentive for Hyundai to settle when it sees an advantage in MSGI's weakened position. The last attorney's group requested a leave from the case due to cost factors. Unfortunately, a legal strategy in today's world, is to request delay after delay in order to get the plantiff to yield due to the cost of litigation. Some companies have actually gone bankrupt while waiting for their cases to go to court. I believe (personal guestimate only) the new attorneys have a contract granting them a large portion of the settlement. Any proceed would most probably first go to creditors who have been holding debt for a lengthy period.

MSGI's survival is dependent upon the ability to generate business and cash flow. They can continue to do business while on the greys but they are handicapped in their ability to obtain financing unless they can tie it to sales and revenue. That is the question. Are they able to generate revenue to keep themselves in business?

Unless and until we hear more information regarding their business strategy we are just guessing what will happen to this company. They could
1) Keep themselves in a holding pattern just long enough to complete the court case and pay off creditors with any proceeds and never leave the greys.
2) They could have a strategy around NASA which may be impacted by the debt ceiling negotiations.
3) They may have active licensing agreements which may or may not be used to deal with their current debt situation.

The point is we really don't know what they are doing or intend to do. But, as an investor, I would not recommend tying an investment decision on MSGI around an assumption it might win a case in the future and that the payout would benefit shareholders.

Just my opinion!

[PrimeTrader]

enlyten - imo - the court case is a moot point. Most likely any settlement will be delayed until right before the trial date in late 2012. There is little incentive for Hyundai to settle when it sees an advantage in MSGI's weakened position. The last attorney's group requested a leave from the case due to cost factors. Unfortunately, a legal strategy in today's world, is to request delay after delay in order to get the plantiff to yield due to the cost of litigation. Some companies have actually gone bankrupt while waiting for their cases to go to court. I believe (personal guestimate only) the new attorneys have a contract granting them a large portion of the settlement. Any proceed would most probably first go to creditors who have been holding debt for a lengthy period.

MSGI's survival is dependent upon the ability to generate business and cash flow. They can continue to do business while on the greys but they are handicapped in their ability to obtain financing unless they can tie it to sales and revenue. That is the question. Are they able to generate revenue to keep themselves in business?

Unless and until we hear more information regarding their business strategy we are just guessing what will happen to this company. They could
1) Keep themselves in a holding pattern just long enough to complete the court case and pay off creditors with any proceeds and never leave the greys.
2) They could have a strategy around NASA which may be impacted by the debt ceiling negotiations.
3) They may have active licensing agreements which may or may not be used to deal with their current debt situation.

The point is we really don't know what they are doing or intend to do. But, as an investor, I would not recommend tying an investment decision on MSGI around an assumption it might win a case in the future and that the payout would benefit shareholders.

Just my opinion!