RAI could be in for a nice bounce 11/12 if anyone sees the Star 10-Q of 11/9 like I do.
Do youall (I can say that ... Texas) not realize that 11 years of pain and what RJR claims to be $55M+ has bought them the right, next year for example (if FDA/TP is to be believed) to begin to have the option of showing the VERY LOWEST TSNA values on ALL its products, smoked and smokeless, when FDA mandates that that information be posted for all tobacco products as a list of potentially harmful constituents?
Star's 10-Q means RJR has that right ... and YOUR COMPETITION DON'T.
Your 3rd place tobacco company has now been armed with a potentially magic sword.
Star's 10-Q says yes, RJR, you may now use our curing technology ... and your competitors may NOT. Did you miss that? Did you miss Star's promise to defend its IP from YOUR COMPETITORS?
My suspicion is that we shall all never see the full settlement agreement laid out, for reasons that may now be becoming clear.
Now RJR has a new sword to wield, and if you think about it so does Star (against RJR's competitors). My suspicion is that the agreement may include RJR helping Star defend its IP ... THAT RJR CAN NOW USE ... against RJR's competitors, WHO CAN'T.
I believe this whole affair may be a very clever end, for both RJR and Star, to a nasty stalemate between Star and RJR, and Star and the tobacco industry ... plus the beginning of a very interesting new battle between RJR (and Star) and ... the rest of them. Think it over.
I could be wrong, but this could be very interesting.
You are completely wrong. Star said they will not go after RJR for infrindgement, but that was on their old patents. Earlier this year, STAR received new patents for curing tobacco with even lower TSNA.
Now that patent is something new!!!
So RJR will be selling something simular to low fat cheese, then the company that buys the rights to use STAR's new patent will be buying FAT FREE.
I think this $5 million is a monthly residual owed to star until RAI and STSI finalize a deal for RAI to buy Star's patents. (No where does it say that the $5 million is a 1 time only payment) At that point the $5 million a month will stop, and star will get a large cash infusion as they transfer ownership of the patents