This board is about as hard to read as any I have ever been on for worthwhile topics. I have no doubts that is on purpose by all the multiple bashers that want to bury such info.
So now that VRNG has been awarded that 6.5% royalty rate! everyone has to be wondering how that impacts the value of owning shares in this company as an investor. SA broke down various scenarios a few days ago and here is the one that comes closest to what has really occurred.....
"Scenario 3 - Vringo receives the 7% royalty rate.
Again, Vringo has over $40 Million in cash and no debt. Adding it all up Vringo would have close to $1.36B in cash by 2016. If we take into consideration taxes, etc, Vringo would come out with around $680M. Divide that by Vringo's 84.12 million shares outstanding, and you get $8.08 cash per share. Earnings Multiple?
A big question coming up now is how much of a multiplier can we apply to Vringo? It's clear now that Vringo has shown that it can generate revenue from its patents and because of that, a multiple should be applied. You can put whatever multiple you think is right whether it be 5x, 10x, or 20x. Because this is Vringo's first big win, I'll play it safe and go with a multiplier of 2X.
So at the 7% rate, . Vringo would have over $680M through 2016. Add a multiplier of two and that would give Vringo a market cap of $1360 (2 x $680M). With a market cap of $1360 and using Vringo's 84.12M shares outstanding, Vringo's price per share would be around $16.08. Clearly, Vringo is severely undervalued as shares closed the day at $3.81 on Wednesday."
Now even at the current price of $5.40's this morning, we are clearly undervalued and buying even at these levels seems like a good reward vs risks.
This is good news Ill admit. We as longs have won, But just because we a settlement doesnt mean were gonna get that Google money. It is a win today. no doubt. but IMO this is a little bit of a bubble. No way google is gonna settle for a billion dollars. One we settle out of court for a lesser some then the longs will truely be rewarded.