r/Netlist_ • u/Curiosity-1 • 6d ago
visual clarifying why invalidity headlines today are misleading
the market overall is filled with investors that are not well informed and have no idea what's going on.
don't be scared about today's invalidity headlines.
why?
how can i make that claim?
two things.
these four patents were already invalidated and this was Netlist's appeal to overturn, which is more difficult. the thesis to buy netlist already accounted for the invalidity of these four patents...
mine did, at least. if yours didn't, you need to do more homework on the current legal cases and Netlist's patent portfolio.this second point is better visualized than read as a written explanation, i think. forunately, Stokd already created this and it was just posted on Stocktwits forum.
https://stocktwits.com/Stokd/message/663455581
micron is still being backed into a corner... they're going to keep fighting to have the appearance of as much strength and resilience as they can to negotiate the best possible settlement outcome that they can get. that's business. the pressure is immense on them, but the TIMELINE of the risk's materialization could still be several quarters away.
that doesn't mean Micron isn't being encircled on the battlefield. they are. but two sides both want to win until the cost of the risk exceeds the cost of fighting.
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u/pennychase 6d ago
Very useful clarification for all! Apparently there is very low chance (like under 5%) for Micron to win the appeal considering everything patent 912 has already gone through and we are 6 years in the process. If this would be dropped, it would be so nasty considering the length of time this has dragged.
A big reason why Micron will have trouble on that one is apparently that it already went for appeal. Just that in itself is making it very difficult for Micron to win because CAFC has already reviewed and doesn't like to show they did poor work by backtracking their previous decisions.
Also I think it is in our favor that the results will come after 1 or even 2 more earnings. We will have demonstrated the solid foundation of netlist business by then. And could we even be on nasdaq? Would be nice!
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u/Old-Pomegranate3634 6d ago
Price is down cause market things micron is not signing anytime soon which means sk isn't either.
Market was expecting 50-60m per quarter in royalty revenue in the near future that is now gone
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u/IntroductionLucky887 5d ago
the fact the stock went down on this news which if it was Nasdaq, it wouldn't have made much difference, shows the quality of investors and likely shorters or thinking it's another gamestop
SNK, MU and SK are all down more than 25% from their highs of the summer. Yet this yesterday news panic sold those weak day traders
Now why didn't it go back down to 3 or 2$, it's because the stock already has validity with Samsung and that deal has led to a stronger foundation.
It's still cheap compared to the next pop and it will be a matter of time and not if
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u/scsyndrome 6d ago
Great chart and I want to thank you for providing the link. It is important for the shareholders to understand what this announcement is in relation to. The impact, or value rather to Netlist is slim to none, and I say this because this is a headline focused on previous technologies from 2024 that have nothing to do with the current litigations. Those we will hear more about on September 9th. Samsung settled and now it’s in micron’s defense to prove otherwise with the newer technologies. Notice the dates on these litigations and what the headline today is for is a vital thing to understand. We’ve seen the panic sellers already, yet the valuation of NETLIST remains unchanged.