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Franklin Wireless Corp. Message Board

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  • user988200 user988200 Dec 10, 2010 9:37 AM Flag

    Novatel Sues for Infringement

    How do you figure that...with little cash it could cripple them financially to defend the case and or if they lose?

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    • how about a simple look at the facts ...

      1) to my knowledge, FKWL does very little, if any, material business w the mifi product that NVTL is accusing them of infringing upon .. this would imply that there would be little in the way of any damages to either the FKWL rev streams or towards NVTL because FKWL hasnt been doing material business w this product

      2) FKWL is not the only person named .. ZTE was also named .. as far as i know, FKWL and ZTE are competitors, and not working together, which implies that NVTL for some reason is trying to sue whomever they are competing with in this space, likely because see these other players moving in with new products that will take market share away .. so seems like a very defensive move

      3) FKWL has hoards of cash, and would also be insured for various issues of liability and the like under standard business practices ...

      4) even in the remote chance this went to court (which i doubt would ever even happen, and certainly not for a couple yrs), there would be little in the way of any damages in the incredibly unlikely chance FKWL received an adverse ruling because FKWL, to best of my knowledge, doesnt even do any material business w this product

      in my opinion this is a buying opportuniy and the stock is going to be a success over the next 12 months as they make progress w new internally developed products, reap the benefits of the associated higher gross margins, reap the benefits of this massive buyback (i believe 25% of outstanding shares) and hopefully penetrate new market segments ... lastly, valuation vs the size of the business, the product portfolio, the eps power and the balance sheet, is very attractive, and yields considerable downside risk protection

      good luck

      • 1 Reply to lilliancap
      • lilli,

        All excellent points..

        You can check the net and find a host of new mobile hotspots coming into the marketplace in the near future. What about the availability of using your cell as a mobile hotspot.

        Does Nova think they own that entire category? Silly nonsense as much as Apple can claim ownership to all handheld portable media players or Motorola claiming ownership of all cell phones. They can't claim they own the tech because wimax has been around long time and I believe was really developed in Korea years before US introduction. The Franklin Hotspot has shown little to date in market penetration. In fact, I believe it's actually manufactured by Epivalley. The ZTE is being used by Clear and probably doing very well.

 
FKWL
1.50+0.05(+3.45%)Dec 24 12:46 PMEST

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