ParkerVision Still Tremendously Overvalued

Alpha Exposure profile picture
Alpha Exposure


  • ParkerVision's loss of JMOL on infringement an enormous blow.
  • ParkerVision stock now essentially worthless.
  • $0.25 per share price target based on option value.

On June 20th, Judge Dalton issued an order on the Post Trial Motions in the ParkerVision (OTC:PRKR) vs. Qualcomm (QCOM) hearing. As part of these post trial motions, he GRANTED Qualcomm's motion for Judgment as a Matter of Law (JMOL) for a new trial regarding non-infringement. In doing so, Judge Dalton stripped ParkerVision of the jury award and royalty rate they had been awarded. While this devastating news caused a precipitous drop in ParkerVision's stock, we believe that the stock is still tremendously overvalued.

At last night's closing price of $1.85 and 98.5 million shares outstanding, ParkerVision carries a market capitalization of $182 million. While this is significantly less than ParkerVision's prior market capitalization of approximately $500 million, there is now nothing to support the current market capitalization. The company produces no revenue and despite hiring 3LP over 18 months ago to work on licensing deals, none have been signed. Furthermore, the likelihood of a licensing deal being signed is now extremely low because ParkerVision just lost whatever leverage they may have had in negotiations as a result of Judge Dalton tossing the first case and the IPRs being filed.

We believe that the only reason ParkerVision stock still trades above $1 is a large fundamental misunderstanding by shareholders. This misunderstanding is highlighted in ParkerVision's press release when they state:

While we are pleased that the court upheld the jury's decision that the patents are valid, we are obviously disappointed with the District Court's ruling that judgment be entered for Qualcomm on non-infringement.

To be clear, the Judge did NOT find the patents valid. He simply found insufficient evidence to find them invalid. If you read the IPRs that were filed by Mike Farmwald and RPX and discussed within this SeekingAlpha article (here), you will quickly realize that the

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Alpha Exposure profile picture
Alpha Exposure is the pseudonym of an investor in individual stocks. He is a proponent in only investing in ideas which he can evaluate himself.

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