American Technology Research (Amtech) plays in a little league park as compared to Fred Hager - the center field fence is a mere $68 per share. Is Mr. Hager calling his bench warmers?
Amtech says there are 3 scenarios investors should consider when valuing RMBS:
1) co is unsuccessful in its licensing and litigation strategy, which would value the current business at $8/; firm has assigned a 15-20% probability to this scenario;The Mercury News article linked here.
2) RMBS is successful with its licensing and litigation strategy, but its forward royalty rates are reduced by remedy actions within the FTC; firm estimates the co could be valued at $42/share based on this scenario, and they have assigned a 35-40% probability to this scenario; and
3) RMBS is successful in its licensing and litigation strategy, resulting in forward royalties from the sales of various DRAM technologies; in this scenario firm could potentially value RMBS at $68/share; firm has assigned a 40-45% probability to this scenario.
Business Week Online article linked here.
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