Art,
RE: <<I think SNDK has a good chance of getting treble damages, in which case the stock is still dirt cheap.>>
Actually, Sandisk doesn't even "need" treble damages, though if they can prove to the court's satisfaction that Lexar willfully infringed they certainly should--and will--get it. But all they "need" is a win which confirms once again their IP, and saying that Lexar has to pay royalties along with everyone else.
Lexar hasn't sold enough, though, for their payments to really make that much of a difference to Sandisk. In that sense, their defense of "we're the tiny little good guy trying to scape out a living going against the big bad giant" defense was true. They just left out the part where the tiny little guy in this case was appropriating property that [still allegedly, I guess I should add] didn't belong to them in order to eke out their living. And now, of course, it turns out from their registration statement that they haven't even been making a real living out their misappropriation, they have been selling at a huge loss, and want to attract a few fools from the ranks of the public and mutual funds to help them pay for their folly by buying a piece of their company that is gushing red ink on top of being in a lawsuit that could end their business! Now, I know that there are lots of investors that go for red ink, but this is surely getting ridiculous. |
