Mr. Rosenberg, I appreciate your candid remarks about the investment risk in WAVX's stock.
I am not surprised to see the majority of these risk factors. In fact, I would have cause to be suspicious in their absence. Hopefully, we can discuss these objectively in future posts.
I AM surprised, however, of the thread's lack of appetite in addressing the "patent" issue. Specifically, the section reproduced below:
..."due to the uncertainty as to whether these other patents could be proved to be invalid, we have engaged in preliminary negotiations with the patents holder to obtain a license thereunder. The negotiations have so far not produced any agreement and we cannot assure you that we will be able to obtain a license on acceptable terms, if at all.
Our inability to obtain a license, if needed, on commercially reasonable terms or to invalidate the claims would have a material adverse effect on our business and our future operations."
After reading the above, a prudent investor could believe WAVX faces some risk of being prevented from executing its business plan. Further, there is the chance of competition, as referenced in a preceding paragraph:
"...also, the holder of these patents or its licensees could seek to invalidate the claims of the patent which we have licensed and therefore be able to commercialize a technology similar to our technology."
These comments were stated in the context of WAVX's acknowledgment of four pre-existing patents which make at least some similar claims to certain "material aspects" of WAVX's technology.
A potential investor would be interested in taking a closer look at the patent risk, associated with this company. Investors, emotionally attached to their stocks, easily dismiss such risks.
Mr. Rosenberg, I cannot imagine one as bright as you would attempt to minimize this patent exposure. If you have thoughts regarding this issue, please share them.
gb
(p.s. have you hugged a bear today?) |
