NEULION, INC. T.NLN

Proceed With Caution

[ocean112]

If anyone has been a bull on Neulion - it's me, but todays class action lawsuit is a bit unsettling for a number of reasons. a) With any perception of litigation risk comes the potential for payout. While they have plenty of cash on hand ($60M or so) - ANY litigation against a company this size is not good (the company is too small to take any legal hit) b) There is also a reputation risk. If there is any perception of wrong doing - clients may not want to be associated with the brand. Again - any drawn out legal action may negatively impact renewals at a time when they need to boost revenue given that NHL still contributes a big chunk to Neulion's bottom line. c) Don't know if you heard - but competition in this space is picking up. Yes - NLN has an advantage to MLBAM, but now NBC is getting into the game and plan to stream their own content (aka - the Olympics) competing head to head with MLBAM and Neulion. At this point - I really don't care about their quarterly performance. To me - the value of Neulion is their integrated, DivX, 4K ready platform that will come at a premium when consolidation starts to take place in this space. The fact they are EBITDA positive is icing on the cake - but right now - with no new news on the horizon - the shorts may temporarily plow through the bulls...but long term - I'm still confident in this company. Good luck.

[lscfa]

It is NOT a lawsuit.....It is a sleazy law firm "investigating" to see if it can find a reason to go any further than issuing a news release.

[Cautiousone13]

Someone sent me this from a financial advisory firm - good read! :) "In regards to NeuLion, the “news”, as you call it, is nothing more than a scheme to take people’s money by preying on their fears and ignorance.  The firm that press released this ambiguous charge is nothing more than a front for the shorts, in my humble opinion.  For all I know they themselves are the shorts, or

[Jimbo67351]

Thanks for the interesting insights. Ambalance chasers are killing the US's spirit ! And shorters love to clap their hands and watch all the birdies scram, just like DH.T last fall.

[OllytheOctopus]

Purcell, Julie & Lefkowitz is definitely new on the block.  The firm's Wordpress web site went live in March: https://bit.ly/1Pdadpp and a quick google search reveals it has issued a flurry of "Shareholder Alert" releases since. So, yeah, your guy is probably right.  Not selling here.