Well, if you just consider the lawsuit, you will find that this one, like any other consists of two views. One side alledges one thing, while the other denies it. Who is right? Generally neither! The reality is somewhere in the middle. The other problem is that in our court system, anyone can sue anyone. I could sue you, you could sue Bill Clinton, and so on.
So let's talk about this suit: The Bibyans think that Golan made promises that Golan does not think that he made. Given the previous relationship between the Bibyans and Golan, my humble take on it is that they are pissed and want to disrupt Golan's future. From a more realistic point of view, the case law indicates that they have one hell of a burdon of proof, which I don't think that they can meet. Untill they jump that hurdle, they can do NOTHING to him. Any work he dows until that time is untouchable!
Let me explain briefly what an injunction is: It simply says to "Stop what you are doing." It is not retroactive, and it does not award money or ownership rights. One of the bashers on here tried once to suggest that it might. That basher was WRONG!
As far as the effect on MVEE, look at it this way. At this time, Golan is making movies. Those movies will be sold. The company will make money. But, untill the financial numbers are out, investor interest is low. With low volume, the price declines. IF at some point in the future, the lawsuit should be decided against Golan, (Which I seriously doubt) then the flow of movies with Golan as a participant might stop. But until that really happens, it is irrelevant.
The reality of this situation is that when the movies sell and money is coming into the company coffers, the price will go up, and not until. Not because of any supposed law suit against Golan that does not make the company a party. You are rationalizing the price going down without realizing the true reason is that on very low volume folks are selling. Your argument seems to be that folks are selling because of the lawsuit. Friday was an up-volume day at a mere 715K or so shares. Recent days have been much lower volume. So read the tables, a few folks are selling. Not a massive exodus because of a suit that may last for a long time. The bottom line is don't worry about the suit. Instead look for the sales of the films. That will signal the rise of the price. Even if the sit were decided today in Golan's favor, the price would not rise, just as it is not falling because of the suit! |
