While this is not the final remedy, any hint of a likelihood in the near term will create a cataclysmic sell off. Selling the balance of my shares at these levels. It's also possible Velti will file a counter-claim.....
It’s confounding that the posters on this board are already judging Velti guilty before a trial has even occurred. There is no imminent injunction – as no trial date has been set – and a judge is not going to order an injunction without giving Velti a fair day in court to defend themselves.
They way I see it, Velti has several options. First I think they will challenge the validity of the patents with the USPTO by filing a reexamination request. Or Velti could settle by agreeing to a license arrangement, which would remove an overhang on the stock, and would likely add a couple bucks to VELT pps if a settlement is announced. Velti could file a counter claim. The burden of proof is with Augme – and so far I have not seen any trial resulting in a successful infringement ruling for or against Augme. Read their press release from 2/14/12 – there is a key sentence – “The Court held that Augme could not prove literal infringement under that Court's claim construction ruling previously issued.”
For 2012, Velti is projecting revenue of $295 Million and Augme is projecting $16 Mil. You tell me who has the more successful platform.
Augme is trading like a POS. Its own shareholders must think this lawsuit is BS. Millennial Media (MM) another mobile advertising company is coming public this week and is supposed to be a hot issue. That should be positive to the price of Velti which appears to be a better value. Maybe Augme will also sue MM.
No chance for an injunction.This whole high tech area is so complex it will be years before final decisions are made. Comments from a highly regarded source. Regulators recognize that too many jobs are being created to get this wrong
I believe this company has potential and stock might go higher after Q1 results, I'm just not comfortable with the whole patent litigation. Based on fundamentals alone I wouldn't categorize this as a sell, that's why I think it's a "hold".