RNS and US litigation16 Jun 2011 09:57
Today's RNS seems to have spooked those hoping for a very quick buck from the US litigation. My 2ps worth is that as the appeal process would have started almost immediately after the judgment in our favour in July 2010, the reality of the "2 year" timescale for the appeal is that we're already almost a year through that. Therefore you have to ask yourselves whether you're prepared to hold onto your shares for a further 12 months max in return for a 100%+ return? Now if banks started offering savings accounts which would double your money in a year, I think the stampede would be TOWARDS them, not away and panic selling!
As a litigator myself (albeit UK based), I would also expect the following possible outcomes:
1. Disney press on with the appeal and win: We appeal that decision, and could take another year perhaps.
2. Disney press on with the appeal and lose - this is what we're all hoping for. If they lose then I would expect them to pay as soon as possible, so as to minimise the further ongoing interest which will continue to accrue since the date of our original judgment.
3. The parties agree a reduced settlement of some kind before the appeal is determined - I consider this highly unlikely - we are on a strong footing and have the benefit of the judgment and disney's failed application for a retrial, and disney won't want to set what they'd see as a dangerous precedent by settling this claim and potentially opening the door for other similar claims.
Like I said, just my 2ps worth. I got in very recently at 115p, and could have sold for a quick 20% gain, but am holding on for the appeal outcome. And in the meantime, please let's not forget that the company is going from strength to strength in it's actual day-to-day business thank you very much!
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