Netlist, a company specializing in hybrid memory solutions, is facing a potential decrease in share price following a recent appeals ruling against them. The ruling is expected to dampen market sentiment, and the company's Q2 2023 sales have already slumped by over 80% year on year, with the operating loss nearly tripling. Netlist's legal expenses have been negatively impacting its market valuation, and ongoing lawsuits against Samsung, Alphabet, and Micron are unlikely to result in a positive outcome for the company. As a result, it may be a good time to open a small short position on Netlist, especially considering the short borrow fee rate is 9.45%. However, risk-averse investors should be cautious as there are no call options available for this stock. The share price could potentially drop below $1.00 before the end of 2023. It's important to note that investing in microcap stocks like Netlist can be volatile, and the author advises performing due diligence and exercising caution. The author of the article, Gold Panda, focuses on undervalued companies and provides a real-time portfolio. It's worth mentioning that the author is not a financial adviser and recommends conducting thorough research before making any trading decisions.
Netlist's legal troubles have escalated with a recent verdict in a patent trial against Micron Technology. A U.S. jury has ordered Micron to pay Netlist $445 million in damages for violating Netlist's patent rights in memory-module technology for high-performance computing. The jury found that Micron's semiconductor-memory products infringe two Netlist patents and that the infringement was willful. This could lead to the damages being multiplied by up to three times. Micron's stock price has surged this year based on demand for its chips used in artificial intelligence technology. Netlist previously won a $303 million verdict against Samsung in a related dispute over high-performance computer memory patents. Micron denied the allegations and argued that the patents were invalid. One of the patents was invalidated by a U.S. Patent and Trademark Office tribunal in April, which could potentially reduce the size of the verdict [5f5bbd80].
Nano Labs Ltd (NASDAQ:NA) has received two Deficiency Letters from the Nasdaq Stock Market, indicating non-compliance with Nasdaq's listing requirements. The first notice states that Nano Labs does not meet Nasdaq's requirement of maintaining a minimum market value of listed securities of $50 million. The second notice points out the company's failure to maintain the minimum bid price of $1 per share. Nano Labs has been given 180 days, until November 19, 2024, to regain compliance with the minimum bid price rule. The company is expected to submit a Compliance Plan to address the market value deficiency. If the plan is accepted, they may receive an extension of up to 180 days to demonstrate compliance.