Who is Samsung going to have problems with in getting regulatory approval? There are plenty of FLASH players (Intel, SMT, Micron, Toshiba) so Samsung/SPSN is in no way a monopoly. Further, it is not an issue of a USA company going foreign, as SPSN is already more foreign then USA. You think Japan would be a problem?
I agree that BK does not help Samsung, because I suspect the merits of the case would result in the BK court seeking maximum protection for debt/bond holders. The current market cap is so small, it does affect such decisions.
However, SPSN can run out of cash while this all plays out. One assumes management is well aware of the ticking clock, and is seeking a solution, but whether that solution benefits the current share price of <0.20 remains to be seen.
The situation is a bit like TMTA IMHO. I sat and dithered on buying that one a couple of days before the big pop, but didn't pull the trigger. Unfortunately with lawsuits, investors never know how (and often when) they will be resolved.
I would also think SPSN might be of interest to patent trolls. They could part out the company to cover most the debt, then see how much they could extort the semi industry for the IP. They could certainly grab control cheap enough right now, and SPSN has enough cash so they would have a few months to structure a deal. In fact it surprises me that some enterprising Chinese group has not figured this our yet. Given the horribly lax regulatory standards there, a network of 100 chinamen could each accumulate stock at the current lows while staying below the SEC's 5% radar, and backhandedly put control together without paying higher prices. Maybe we will see the birth of Chinese patent trolls. |
