BRST.PK

Ulysses · #1 03-11-2005, 06:48 PM

These guys have been in litigation vs. Microsoft regarding some technology that MSFT has now incorporated into Windows Media Player.

They settled yesterday, just before the case actually went to court after lengthy legal preparation.

The settlement terms will be finalized and disclosed next week.

Settlement amount of approx. $200M is priced into the stock.

I've been researching comparables over the years and think this might be worth taking a flyer on.

Any thoughts?

parttimepro · #2 03-12-2005, 07:34 PM

Umm, it looks like they settled for $60 million. Or at least that MS bought a license from them for 60M.
Press Release
It does look pretty cheap for a company that's going to get 60M in cash. It's selling for 3.15, and there are 20 M shares outstanding. Looks like a lot of the money will get paid out in a dividend, and the rest of their business plan involves a lot of lawyers. Meh.

MMMMMM · #3 03-12-2005, 09:49 PM

Pretty interesting but I'd like to get wickedgoodtrader's take before I do anything.

Ulysses · #4 03-12-2005, 11:15 PM

The 60M settlement is a fraction of what was expected.

One third of any settlement goes to contingency lawyers. And the market cap figure based on outstanding shares is nowhere near fully diluted.

In short, the low $3 price basically implied a $200M settlement priced in.

So, I am going to get reamed on this stock unless they quickly announce some huge license fees by the other companies using similar technology. Unfortunately, there's a good chance that money will only be in the tens of millions.