The following is a developing story we alerted our premium members to on 8/23/2024 when the target stock in this update was trading at around $4 per share.
Just when I thought I would swear off investing in any U.S. listed China based stock (due to the painful years-long Origin Agritech Limited (NASDAQ:SEED) journey), along comes another one.
Before you say anything, DON’T SHOOT THE MESSENGER.
This company, trading on the NASDAQ, is a Chinese software company with a focus on AI technology, particularly a conversational AI platform. The company has licensed its technology to major telecom firms in China, sports annual revenue of about $59 million and is backed by Chinese conglomerate, Alibaba.
While the target company is losing money and has a debt burden, fortunes could be dramatically changing soon.
The company’s decade-long patent lawsuit against a top ten U.S tech firm (“defendant”) it claims is illegally using its intellectual property in the defendant’s software.
The company is seeking over a billion in damages. Now, due to a recent news development misunderstood by investors, we predict there is an extremely high probability that the company HAS WON the lawsuit, which will soon be announced.
To put the over $1 billion award into perspective, that equates to about $177 per share vs. the current stock price of around $5 to $5.50.
The lawsuit has seen many legal twists, including the large tech firm’s attempt to invalidate the patent. This was a very clever move by the defendant. It paused the ability of the company to litigate on the patent infringement claim for what turned out to be an eight year battle in the courts on that issue.
In July 2020, the defendant lost its battle with the courts to invalidate the disputed patent. This was a critical win for the company we’re talking about, allowing them to immediately pursue their original patent infringement claim.
Although this lawsuit, with the potential massive award, caught our attention, a degree of uncertainty as to when the courts would rule on the claims existed…Until now…
Now, we have clear evidence to support our prediction that the subject company should win over $1 billion, equating to about $177 per share, compared to the current price of around $5 to $5.50.
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200+ Multibaggers and counting
~Maj