They are now at 8.3% with 5,133,442 shares of AVNW. At the rate they are accumulating, they could be at 10% by end of next week!
This is what they bring to the table:
"SPH’s mission is to work with our managements to effect catalytic events or, if required, pursue an active strategy and encourage such catalytic events. The catalytic events may include the reduction of corporate overhead, share repurchase programs, the payment of special dividends, divestitures of excess or underperforming assets, acquisitions, or an outright sale of the company. In many instances, we are ready, willing and able to purchase the entire company. This is one of our competitive advantages, and once acquired, we have the ability to improve upon capital allocation and implement SPH Programs such as Operational Excellence, Purchasing Council, Corporate Services and CEO Summits. "
"We have been extremely successful in identifying undervalued businesses and assets and then figuring out how to unlock hidden values. However, identifying undervalued securities, businesses or assets are only half the battle. Value managers are constantly frustrated because value stocks generally remain cheap, unless there is a catalytic event to unlock the value. SPH believes a passive approach to investing will not yield above average returns. Rather, an activist approach is required, regardless of where we invest in the capital structure. We believe the combination of investing in undervalued, neglected companies with an activist shareholder approach will, over the long-term, yield superior returns. "
Schneider Capital, who also significantly increased their holdings last quarter still holds more share than SPH, so it will be interesting to see whether they are working together to effect change or they will be competing with each other. I think It'll be a plus for other shareholders like myself either way.
Take a look at Steel Partners's Annual Letter dated May 1st, 2014. I'm pretty confident they are not stopping at 6.7%.
From the letter:
"SPH’s mission is to work with our managements to effect catalytic events or, if required, pursue an active strategy and encourage such catalytic events. The catalytic events may include the reduction of corporate overhead, share repurchase programs, the payment of special dividends, divestitures of excess or underperforming assets, acquisitions, or an outright sale of the company. In many instances, we are ready, willing and able to purchase the entire company. This is one of our competitive advantages, and once acquired, we have the ability to improve upon capital allocation and implement SPH Programs such as Operational Excellence, Purchasing Council, Corporate Services and CEO Summits."
It cost $x to buyout VGZ at current gold price.
What would it cost to buyout VGZ when gold price is at $1400, $1500, or higher? Or when they have all the permits in place? There are always potential buyers, it's just a matter of how much they are willing to offer and at what price the seller is willing to sell. No way would the board be willing to sell the company at 75 cents a share. Not even close.
The EIS approval removed much of the uncertainly/risk associated with a buyout of VGZ. No one knows if a buyout would happen, but the EIS approval certainly is a trigger for new negotiations.
They are at 6.7% and probably climbing. Any entity holding that percentage of a company usually have access to the companies directors and some influence over its future. If they are trying to get to 10%, it will even be more obvious as to their intentions. Pushing for a buyout is certainly one of the most common exit strategy. Have you seen the trade details at the bottom of their last two 13D filings for AVNW? It displays a level of urgency to me.
Any thoughts on how CICI's technology can be used for secondary sign-in verification?
Customers now expect the Cloud service providers to help them secure their data even when their password or device is hacked. No more blaming the victim. They want to be provided with easy/user friendly secondary sign-in verification solutions. If you lose your phone and your phone is connect to the Cloud and email accounts. Having the the secondary sign-in verification as a text msg or email might not be sufficient.
"Handwritten signature is the most widely accepted biometric to identity verification."
For some reason Yahoo won't let me post all the trades listed in the 13D filing. Based on the size of their purchases and the corresponding total volume for the day, it seems like they are basically buying everything up and willing to do so while walking the price up. They have been doing that for months now. You really have to take a look at the bottom of their last two SEC 13D filings to see what I mean.
If this doesn't signal a buyout in the works, I don't know what does.
I will remind everyone again that there are in fact two separate lawsuits that impacts ULLtraDIMM.
The "Trade Secret" lawsuit is against Diablo only, while the "Patent Infringement" lawsuit is against Diablo and Sandisk (SMART Storage). The request for preliminary injunction will likely come out of the "Trade Secret" case if they choose to ask for it. Netlist already stated the following in an old SEC filing: "After Netlist deposes the two former Diablo employees identified in the whistleblower letter (and questions the suspected author of the letter), Netlist will bring a motion for preliminary injunction to put a stop to Diablo’s misappropriation and infringement..."
Perhaps it's related to an earlier letter where Netlist stated:
"Applicant respectfully urges that additional and/or alternative reasons for allowance may exist apart from those advanced by the Examiner and the Applicant, and these reasons may each be independently sufficient to establish the patentability of the allowed claims.
Applicant respectfully reserves the right to introduce, articulate, or otherwise comment on any such additional reasons for allowance as may be appropriate in any future proceedings concerning the one or more claimed embodiments."
Well, the patent application 13/559476 have been in the public domain for a long time, published since 4/4/13 I believe. Most people just don't check the status regularly.
Application number: 13/559476 Flash-DRAM Hybrid Memory Module
Perhaps someone more knowledgeable about the patent application process can take a look at the Image File Wrapper and clarify what's going on here.
The claims were approved and the patent was scheduled to be approved as stated in the following letter under the Image File Wrapper tab:
08-27-2014 ISSUE.NTF Issue Notification
Now it shows Netlist requested continued examination.
Interesting development here. Looks like the patent issue date is delayed due to a "request for continued examination" by Netlist themselves. The patent application was previously approved and an issue date of 9/16/14 was even sent out on a 8/27/14 letter. The only reason I can think of for Netlist to request for continued examination would be to make the patent even more bullet proof to avoid re-examination requests being granted.
There are some misconception about what needs to be disclosed in SEC filings within a few days of the occurrence. Simply put, if the an agreement is not finalized, it is not material to the company. e.g. One of the company I own sold its core business recently. The deal was announced to the public on 5/29/14. However, the negotiation started more than 7 months earlier in mid Oct 2013. They signed mutual non-disclosure agreement on 10/17/13. Many things happened between 10/17/13 and 5/29/14, but they did not have to report it until the Asset Purchase Agreement was signed by both companies at which point it became truly material to the company because it is at this point that the company cannot just walk away without breakup fees.
Any preliminary licensing or lawsuit settlements agreements that depends on USPTO decisions or JEDEC finalizing module specs would not be material until such decisions come out. Non-disclosure agreements would also prevent them from disclosing anything, because such deals would depend on compliance of the NDA.
For those who are not familiar with my posts. I am an individual investor/shareholder and only post under this name. One only have to click on my name to see all the posts for other stocks I am currently invested in. I did not create an alias just for NLST like some people here.
I do not take short positions, I only take long positions. However, I do take some profits when it makes sense (a bit of trading, but definitely not a day trader). I invest in companies that are beaten down but with great potentials, companies with excellent risk to reward ratios. I do not buy on margin, and I am quite patient. I think of myself as an investor, not a trader. I depend on my own DD. I have no insider info and I am not connected/associated with any insider of any of the companies I invest in. However, anyone familiar with my posts know that my DD is at a level where I can uncover public info before it becomes widely known. That's the difference between real DD and just doing a google search. Real DD requires digging and connecting the dots. It requires reading things that do not show up in search engines. Yes, it is time consuming. I spend about 20hrs a week on research.
Good luck to all the longs here! Hopefully a partnership, licensing agreement, or lawsuit settlement is announced soon. In the mean time it's a good time to accumulate. I increased my holdings by about 30% recently.
I believe the following is Netlist's lawsuit strategy.
1. Netlist has limited funding for lawsuits, so they go after the weakest link.
2. That also means they probably prefer to go with one active lawsuit at a time. Lawsuits cost money, but it also divert attention from management and the rest of the team.
3. While USPTO decisions take a long time to play out, it is relatively less costly than an active lawsuit as much of the work is done by existing employees as oppose to lawyers. Once the USPTO decisions are in with all appeals exhausted, it also simplifies the lawsuit significantly. Additionally, there could be agreements made behind closed doors where it made sense for every party involved to have the case stayed. e.g. The USPTO decision could be used as a form of arbitration. The parties could have licensing agreements in place pending USPTO decision with provisions for retroactive payments.
When Inphi lose the LRDIMM lawsuit, they will not be the only ones paying licensing fees.
When Diablo lose the "Trade Secrets" lawsuit, Sandisk will also be impacted as well because of UlltraDIMM.
Diablo and Sandisk are not the only ones infringing on Netlist Hybrid Memory IP, but again, they cannot be suing everyone at once. A few key patents were only granted only recently with the one completing the set being issued this Tuesday 9/16/14.
The next big thing would be Netlist partnering with a large player on HyperVault. That would show that they have learned the lesson that it's better to have a shark as a friend when swimming in the ocean with other sharks. This partner will get the benefit of having the best IP portfolio in the area of NVDIMM / Hybrid Memory.
No licensing agreements have been announced yet, but I am willing to bet against anyone who is betting it will never come. In fact, I am willing to bet that some agreements have already been made, pending certain events before it is announced to the world...
First, the Next Gen Chem Detector (NGCD), then... Next Gen Disease Detector...
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Other advances included the armor plating for tanks in World War II; Snopake, the first correction fluid, developed in 1955; the fuel for the first nuclear submarine, the USS Nautilus (SSN-571); development of the Universal Product Code in 1965; cruise control for automobiles in 1970; and the first all-sputtered photovolatic cell for solar energy in 1974. In 1987, PIRI, a fiber optics venture with Mitsubishi and NTT, was launched, which resulted in a $1.8 billion market. A fun note, in conjunction with Kevin M. Amula, Battelle Geneva developed "No-melt" chocolate in 1988.
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Battelle provides funds for a public policy research center at The Ohio State University to focus on scholarly questions associated with science and technology policy. The Battelle Center for Science and Technology Policy began official operation in July 2011