ParkerVision

ParkerVision, Inc (PRKR) is a company protecting its patents via litigation. It sounds a lot like patent trolling  which is disgusting, but my favorite financial writer, Andrew Tobias, insists that this isn't what's happening here. Also, the company has more than patents going for it.

In February, ParkerVision's multi-billion dollar trial against Qualcomm was imminent, and the stock (which I'd bought at 40¢/share) zoomed up to $1.86 in anticipation. If it won the lawsuit, it would pay off like a lottery, and if it lost, it would plunge some, but there's other big litigation on the horizon, plus, as a sweetener, the aforementioned other stuff.

But the trial was delayed to late 2021 at the earliest. So of course the price fell, and continues falling, because investors are twitchy and NOBODY (except ratty little me) wants to tie their money up for 6-12 months waiting around like dopes (patience is my superpower).

I do not recommend investing in PRKR in the hope they'll win their litigation. First, it's speculative, and I'd hate to see you lose your money. Second, at it's current price ($1.08) it's no longer the cheap lottery ticket it was at 40¢/share.

However....

At some point the trial will reschedule. And as that date draws near, interest will perk up again, raising the stock price again. And I just can't see how anything fundamental will have changed. Either the patent was previously violated or it wasn't, and the market has previously priced that question at $1.86. So it should go up to somewhere near $1.86 again, give or take, as the new trial date draws near. It will almost certainly rise from $1.08. So what I’m suggesting is: buy now (or in the near future), and sell before the trial. 

If it does hit $1.86, that would be a 72% gain over today's price. That's beaucoup. And it doesn't hinge on the trial result. The company could lose at trial, at every trial. It could crash and burn miserably but you'd be out and counting your money long before that happens. And while I could devise sci-fi scenarios for disasters between now and the trial (Congress legislates a completely new canon of patent law? Management caught operating a white slavery ring?), I can't see the risk.

But risk is there, whether I can see it or not. It always is. Only invest what you can easily afford to lose. This is one of the safest, surest ≈70% profits I could imagine, but please be careful, as I've been wrong before!

The following are Tobias' writings about the company, in chronological order. They assess its litigation chances, and, again, I'm not suggesting you bet on that litigation (though you may want to let a few shares ride, as a lark; $50 might turn into like $500. Or be sucked into a gaping pit of judicial pain and never seen again).

Jan 24, 2018, Dec 10, 2019, Mar 11, 2020, May 4, 2020, June 10, 2020, Jul 7, 2020, OCTOBER 9, 2020, Nov 17, 2020, Nov 24, 2020, Dec 31, 2020, Jan 24, 2021, Jan 27, 2021, Jan 28, 2021, Feb 3, 2021, Feb 11, 2021, Feb 14, 2021, Mar 2, 2021, Mar 11, 2021, Mar 29, 2021, Mar 30, 2021, Mar 31, 2021, Apr 6, 2021, Apr 17, 2021,

I've been a big fan of Andrew Tobias' writing (I copy his style sometimes) since college, and have followed his blog for almost 30 years, and also know him personally a little bit, and he's not just super smart, successful, and dialed in, he's a sweet guy incapable of deception or manipulation. And even if he wanted to manipulate, his sleepy little blog is too sparsely read to move markets, and he knows it. So (just like me right now) he offers tips as a gift to his small circle of faithful readers. You might want to bookmark him. But this side play isn't something he's pushing. It's my big idea.

Here's the catch: the timing will most likely compel you to take a short term capital gain, which is taxed highly (depending on your bracket). But this level of profit should still be well worth it (check with your tax person).

Also, you may want to wait to buy, because the price keeps falling (markets hate a becalming, and there probably won't be meaningful PRKR news until the new trial date is announced). But if you wait too long, the announcement might come before you can get in, and the price will have begun rising. My wild guess is trial won't be announced until September, so I plan to buy shares for this side-play in late August, hopefully for 85¢ - 95¢. OTOH the current $1.08 is already plenty low. (Edit: now it’s $1.05!)