I'm not going to bet too big until tax loss selling and the fiscal cliff worries are over. But it appears to me that everything is on track. The rollout has a toehold and the initial stage of accelerating sales has begun. When it's apparent how successful it's going to be, the stock price will have already moved.
Seeing as how MELA is now one of my largest holdings, I'm hoping that our little HDC doesn't bring up that patent infringement issue. They seem preoccupied with their internal issues so I'm hopeful that MELA with be left alone to thrive.
Hi Marcel, I wasn't sure whether or not you still owned MELA. You never know what will happen, but if HDC had widespread infringements on their patents, I think an atty would have gladly taken up the cases on a contingency basis - or someone would have bought the company for the IP. HDC thought they had a sure thing against Intel - and Intel prevailed. I question how much infringement there really is, by any company.
It's a myth that there have to be damages before you can sue. Vermillion didn't have any revenue when HDC sued them. So they don't need to wait to sue MELA. And even if HDC does sue (not certain that they will) and wins (not certain that they would), look at the Vringo vs Google case. The damages were limited because Vringo waited to sue. So we have Barnie on record that he thinks MELA is infringing, and he hasn't filed a suit. He's given MELA the de facto green light to proceed. His comments about waiting for damages might have been more for shareholders than a legal issue.
As for MELA itself, I think they are in the sweet spot. The rollout has started, but because sales aren't through the roof yet, there is some discontent among shareholders. And the price has pulled back because of it. In the last presentation, mgt spent most of the time explaining that the rollout was on track, and why Q3 sales were less than Q2. I think the rollout is on track.