Go browse any lower cap stock on Yahoo, most will have someone of your ilk calling people names, dismissing any positive point of view with derision and nonsensical retorts. Only the mentally ill or someone with skin in the game would carry on as you do. Why waste time monitoring this board and responding to every post with your LOLOLOLOLOLOL AHAHAHAHA IDIOT, MORON!!!!! You clearly want to try to influence others who might be browsing these forums. IDIOT.
All those shares shorted the past 3 days, with larger than normal volume, will need to cover, and the volume today was 190,000. They will look to cover in the lull between news, when the momentum traders have moved on, the daily volume will likely be lower than normal until the next PR. Shorts are gambling that there will be enough time to cover systematically and not overnight on another gap up, which will likely see more shorting to keep price down.
It isn't smart money, it is opportunistic. Hedge funds use Yahoo to stalk low cap stocks, spreading FUD, fear, uncertainty and doubt keep the ignorant retail away. Bigger funds/firms usually stay away from these lower cap stocks, so Hedge funds prey on them like vultures. They had to short a lot to keep the price from flying.
Shorts were 40%, 50%, 65% of the daily volume, people flooding the market with short shares, keeps price subdued with false supply of shares. If you have only 20%, 30%, 40%, we'd be at a much higher PPS.
It is clear that much of the market doesn't know squat about NLST, their court cases, their patents, the implications, etc. Then you have the persistent negative presence that has followed NLST for year, due to the financial stresses they have endured due to the litigation and the USPTO tortoise speed of exams.
Yesterday was heavily shorted creating a false supply of shares, it was a few million share volume. Today, immediate dump on open, and you can see it is still game playing with the PPS.
Netlist really needs something concrete to get the investors who don't play games into the stock. They need that first licensing deal, they need IPHI to throw in the towel and settle, they need to PR that first supply agreement with the Hyperscale company, they need SanDisk to settle, etc.
Any of those would put an end to these hedge fund games that are being played out here on the Yahoo forum.
It doesn't matter if it is 1.30, 1.20 or 1.05, at any of these prices, it is undervalued based on IPHI and Diablo/SmartMod case. AND NV-DIMM supply scenario that we've heard.
The case against SmartMod/Diablo is going forward, that is the other part of news, that they were denied a stay in the case until patent re-exams.
Patent '274 was partial Affirmed, not rejected. NLST has options for further review. '537 is fully supported by USPTO, so IPHI does get hurt there.
I think the prudent thing to do would be to wait to see what they do for a capital infusion, they need it to offset cash burn until they can get profitable.
Think of it this way, if they dilute 65M shares, then keeping the same market cap of 18.4M, you'd be looking at 0.16 cents as PPS to match the same market cap with the greater number of shares.
The current S-3 will allow them to raise up to $26,276,158, their current PPS is 0.38, now say they can optimistically raise at 0.30 PPS, it would take 65 million shares dilution to raise 19.5M dollars, which would be a nice chunk of change, but, you'd be diluting the number of shares by more than double.
Trading here is dangerous as they filed an S-3 late July. They need cash, they have till December to be above 1.00 for 10 days to avoid NASDAQ delisting worries. They should reverse split and then raise cash, to be more secure, but that would hurt current share holders, the market is likely expecting the worst, a split and raise or even just a raise. It would dilute significantly, 20 Million shares and 0.20 is only 4M dollars and they need more than that.
If this supply deal with the hyper scale company comes to fruition in Q4 and they grab a couple other qualifications and they can license DDR4 fairly, then the risk/reward certainly and heavily favors reward now. That doesn't include the trade secret theft with two whistle blowers speaking on their behalf, nor does it include IPHI.