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  • Conn's Has Been Deemed A Perfect Short [View article]
    This is not Best Buy. This is a subprime lender of durable goods, mattresses and TV's. What made this company generate strong growth was lending to those no one else would lend to. If you were a warm body Conns would loan you $2500. That model comprises most of the $700+ million dollar portfolio. These people are paycheck to paycheck survivalists and their economies are suffering. Conns problems collecting from their customer base has been well documented over the last 2 years. This is not a surprise, rather a deep widening problem that can't be repaired. The CEO tried this by attempting 3rd party collection of bad debt, only realizing it did not work. The credit re-aging process here is unclear and the lack of guidance speaks volumes that the rabbit hole can be far deeper than anyone knows. One thing is certain, the CFO must know and his departure in the middle of financial litigation speaks volumes. We all know Conns keeps very little cash on hand. With Moody's casting a negative rating on Conns how long will it be before Conns vendors puts the company on no credit terms? Not long IMO.
    Dec 19, 2014. 07:27 AM | 1 Like Like |Link to Comment
  • Conn's Investors Do Not Need To Worry [View article]
    @ Money Green

    Conns spends significant amounts of money on Radio, TV and Print advertising, as mentioned on the Conf call.

    This is a material expense and absolutely critical to Conns success or failure. The vendors use the rating agencies to determine what terms can be offered. A negative rating can eliminate 30 day terms and force Conns to pay "up front" for its advertising.

    Conns maintains as little as $2 million dollars of cash on hand, being forced to pay up front will cause the company to require more working capital- ie. debt.

    Net here is a negative outlook has severe ramifications, and cannot be taken lightly to an ongoing concern that keeps very little cash on hand to fund its operations.
    Dec 17, 2014. 10:33 AM | Likes Like |Link to Comment
  • Conn's Investors Do Not Need To Worry [View article]
    Moody's rates their bonds and only offers a negative outlook, no stock price targets. Research Moody's, Standard & Poors, and Fitch.
    Dec 17, 2014. 08:11 AM | Likes Like |Link to Comment
  • Conn's Investors Do Not Need To Worry [View article]
    Masking the real problems with the credit portfolio is the driver for the decline in confidence. This has been building for the last two years with chronic excuses blaming collectors, the phone system, 3rd party collections, and arguably the CFO. In fact the only excuse I didn't hear was the dog eating the data base storage. Still with all this lack of expertise the CEO decides on staff collections can do it better. Moody's Ratings isn't buying that and neither am I.
    Dec 16, 2014. 07:22 PM | 1 Like Like |Link to Comment
  • Update: Vringo Post En Banc [View article]
    Todays ruling is only significant in that the Court of Appeals retains "Fact Finder" role in contravention of Federal Code 52(a). The Supreme Court is due to answer this question possibly this month, or in January, with the decision of TEVA v. Sandoz. Until this question of jurisdiction is resolved we will continue to see legitimate verdicts overturned by a failed process that marginalizes the District Courts and destroys the notion of fair jurisprudence.
    Dec 16, 2014. 07:48 AM | 11 Likes Like |Link to Comment
  • Vringo -13.4%; en banc petition for Google suit denied [View news story]
    Message today is clear, the U.S Court of Appeals is the "Fact Finder" and the Federal Code of Procedures Rule 52(a) is a back seat passenger. That is until The Supreme Court rules on Teva v. Sandoz.
    Dec 15, 2014. 01:16 PM | 3 Likes Like |Link to Comment
  • Conn's Dismal Q3 Report Has Sent Shares Lower By More Than 30%, Is The Sell-Off Overdone? [View article]
    I have grave concerns that the exit of the CFO could have been in any way linked to the decision to keep the Charged-Off debt in-house.

    As we all know CONNS has previously ran afoul with re-aging bad debt. In fact the CEO disclosed a plan to correct this action on April 5, 2013.

    Read page 10 of the Federal Complaint For Violation of Securities Law filed March 5, 2014 against Conn's.

    http://bit.ly/1wZ8WII

    What kind of oversight is in place to stop the old habits of re-aging? Holding this bad debt in-house does not make any sense to a company that has demonstrated severe problems managing their credit portfolio.

    This is a problem.
    Dec 9, 2014. 09:12 PM | 2 Likes Like |Link to Comment
  • Worlds: Expect Favorable Findings From The Markman Hearing [View article]
    Probably one of the best articles I have read by an SA Contributor.

    Exxon is a good case citation- "Datamize" is highly referenced by the Appellate for indefiniteness.

    "When a claim term “depend[s] solely on the unrestrained,
    subjective opinion of a particular individual
    purportedly practicing the invention,” without sufficient
    guidance in the specification to provide objective direction
    to one of skill in the art, the term is indefinite. Datamize,
    LLC v. Plumtree Software, Inc., 417 F.3d 1342, 1350"
    Dec 8, 2014. 06:34 PM | 3 Likes Like |Link to Comment
  • Single Touch Systems: Building A Patent-Assertion Fortress [View article]
    There are 3 of interest to me.

    The stand out is below,

    U.S. Patents 7,054,949 Hulu, Netflix, Amazon, Facebook; SITO has additional that are complementary to streaming media but this patent is the oldest and 1st patent in streaming media over wireless that my research shows.

    The disconnect here is they just need the right attorney to move this faster.
    Dec 7, 2014. 10:03 PM | Likes Like |Link to Comment
  • Hercules Offshore: Undervalued Titan In The Gulf [View article]
    Consolidation might be in the cards for HERO. Paragon(PGN) is the logical choice. One of the KFELS Super A's appears to be heading to the North Sea and Paragon has 2 rigs operating there now, with more on build.

    Financially merging the two thru stock swap would make the most sense. Paragon has the high utilizations but not much in the way of tax dodges. HERO is winding down in the GOM due to short leases and dropping oil prices.

    Both CEO's are cut from the same cloth and have worked together before. Hero is priced right at $1.16 and with $200 million cash and no Bond's callable for another 7 years it just makes sense to merge.

    Shareholders from both companies stand to win tremendous gains as the new company would probably have a new identity, FORCING massive short covering (20% currently for both companies) on its stock.

    A combined Hero and Paragon would be the worlds leader in Jackup Rigs and the under 1000 ft driller. They would own the market and could force price adjustment.
    Dec 7, 2014. 09:53 PM | Likes Like |Link to Comment
  • Update: Vringo Wins In The U.K. [View article]
    Every day that passes without Enbanc updates leads me to believe the Appellate majority is waiting for the Supreme Courts direction on the TEVA v. Sandoz ruling; does the appellate have "de novo" overrule authority over determining Substantial Facts per federal code decided by the lower court Judge.
    Dec 2, 2014. 10:02 PM | Likes Like |Link to Comment
  • Update: Vringo Wins In The U.K. [View article]
    It's unlikely ZTE would settle without a Global license.
    Dec 2, 2014. 09:50 PM | Likes Like |Link to Comment
  • Update: Vringo Wins In The U.K. [View article]
    The article neglects to inform the readers of the previous settlement dialogue that is now subject of the NDA Lawsuit. The proposed settlement was $440 million up front. Given that Vringo has already established this as a baseline I'm not certain why you would infer $100 million as an example?
    Nov 30, 2014. 08:43 AM | 1 Like Like |Link to Comment
  • Update: After Today's U.K. Ruling, Keeping One Eye On Vringo [View article]
    Investors should notate the remarkable similarities and timeline that occurred with Ericsson v. ZTE (infringing on patents related to GSM and 3G cellular technology).

    In April of 2011 Ericsson filed lawsuits in Germany, the U.K. and Italy against ZTE for infringing on patents related to GSM and 3G cellular technology. ZTE counter-sued soon after.

    On January 20th of 2012, only 11 months after the Germany, UK and Italy lawsuits were filed ZTE settled with Ericsson for a purported $650 million settlement.

    http://bit.ly/1FBWspN

    ZTE has taken all of the same strategies it took with Ericcson with a few exceptions. It has allowed multiple detrimental court verdicts in the same countries pending Ericcson litigation was to occur, had its products impounded and seized, been found to have violated an NDA in its settlement negotiations; bad faith presumed.

    In contrast to Ericcson, Vringo's position to negotiate is superior markedly. Given the failed negotiations in New York exposed a purported $440 million one-time payment with continuing Royalties, it seems obvious Vringo will seek enhancement to this payment beyond those levels.

    Trading at under $100 million in market capitalization, given the circumstances and the similar outcome of the Ericcson litigation, every reason exists for Vringo to trade at a risk level closer to the award of $440 million.
    Nov 28, 2014. 12:54 PM | 9 Likes Like |Link to Comment
  • Vringo +18.1% on favorable U.K. ZTE verdict [View news story]
    Investors should notate the remarkable similarities and timeline that occurred with Ericsson v. ZTE (infringing on patents related to GSM and 3G cellular technology).

    In April of 2011 Ericsson filed lawsuits in Germany, the U.K. and Italy against ZTE for infringing on patents related to GSM and 3G cellular technology. ZTE counter-sued soon after.

    On January 20th of 2012, only 11 months after the Germany, UK and Italy lawsuits were filed ZTE settled with Ericsson for a purported $650 million settlement.

    http://bit.ly/1FBWspN

    ZTE has taken all of the same strategies it took with Ericcson with a few exceptions. It has allowed multiple detrimental court verdicts in the same countries pending Ericcson litigation was to occur, had its products impounded and seized, been found to have violated an NDA in its settlement negotiations; bad faith presumed.

    In contrast to Ericcson, Vringo's position to negotiate is superior markedly. Given the failed negotiations in New York exposed a purported $440 million one-time payment with continuing Royalties, it seems obvious Vringo will seek enhancement to this payment beyond those levels.

    Trading at under $100 million in market capitalization, given the circumstances and the similar outcome of the Ericcson litigation, every reason exists for Vringo to trade at a risk level closer to the award of $440 million.
    Nov 28, 2014. 12:52 PM | 4 Likes Like |Link to Comment
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