RE:RE:RE:RE:RE:RE:RE:The decision I made a decision with advance knowledge. I shared it all with you. I am not short. QTRH is not a good risk/reward short setup.
Here was the rationale for the pivot
- Assume Apple judgment is worth $0.
- Jury could side with a 0.05/unit rationale. Even with a 20% increase in Intel based phones, this would amount to $20M
- A third jury trial on damages will eat even more into legal contingency fees. It is on a sliding scale. After the Samsung most favoured nation payment, QTRH could get almost nothing even if they get a modest third verdict.
- This could impair or complicate the WiLan sale process. Or significantly delay it. The BlackBerry sale process took 18 months. WiLan unlikely to sign major deals and will prefer to do so as a standalone entity.
- WiLan worth zero and the expensive corporate overhead structure(until eliminated), you get $1.80 on the stock.
Things that alter this view would be an Apple settlement or a quick sale of WiLan. Both don't seem highly probable in the near term.