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Vringo, Inc. Message Board

  • asiangamble asiangamble Oct 22, 2012 5:57 PM Flag

    I think Google has not bought them out because

    I think Google has not bought them out because of differing views on valuation. Vringo only has roughly 110 million total shares outstanding.

    A settlement of say, $300 million and forward royalties of 1/2 percent and a PE of only 2 makes Vringo a $15 stock, not even counting the Nokia patents (worth $5), pushing likely value to $20.

    Vringo knows this, and if Google made, for example, a $10 buyout offer, Vringo would likely reject it. Only trading for about 3.5 right now, maybe a good hedge for some folks.

    Sentiment: Hold

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    • Please hold on to your day job and leave valuation analysis to professionals. PE is only relevant for an operating company with operating earnings and is also based on the growth rate of those earning. VRNG is an IP company with 27 employees. VRNG valuation should be based on the present value of aggregate damages and royalties those patents will earn, less expenses to be incurred by the company. For a VRNG buyout scenario, valuation is determined by the bidder based on what VRNG assets are worth to the bidder, which may be completely differently than what those assets are worth to VRNG.

      • 1 Reply to truebluefin
      • disagree; i've taken courses in valuation. PE is based on future expected revenue. it really comes down to whether you think Vringo can make more money in patent infringment collection and if so, how much. If you don't think there is any more, yes you would not apply a PE ratio.

        i do agree that they need a number of wins under their belt, some steady cash flow associated with it, and a systematic estimate of the value of the patent market, all of these are very undefined at this moment.

        Sentiment: Strong Buy

    • Google hasnt bought them out because its illegal to buy a company out when your in a lawsuit with them.

      Sentiment: Hold

    • there is no PE on cash, youre also not taking out taxes of any settlement, and youre really kidding if you think vrng wouldnt take a buyout of 10. goog doesnt care to buy them out, and nobody does, because if they lose theyre worth 60mm dollars.. and goog doesnt want to own a patent troll company. its a bad image to have

 
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