Financials SummaryRelated Terms:
Fundraising History An overview of ParkerVision’s fundraising history is presented. A private placement has occurred at approximately 12 month intervals since 2003, and is anticipated again for the first half of 2008. The stock price is currently being manipulated around its typical peak of $10 - $13. In a few months, we anticipate the stock price to cycle back down towards its “bottom” value of $4, or even lower.
Valuation: Currently, the stock is overvalued. A stock price that would be more representative of the actual company performance is pegged at 13 cents. Furthermore, we cannot determine long-term value in ParkerVision that would justify a stock price exceeding $0.26, based on the the company’s past three years of revenue performance, its inability deliver new products in a timely manner, and its lack of design wins almost two years after announcing its new D2P product. To date, there are no design wins or licensing deals for the D2D technology. Update, on December 21, 2007, Jeff Parker announced a D2P and D2D design win with an unnamed OEM. There has been no independent confirmation of this, as yet.
Quality of Investment: We believe the following two characteristics indicate a more fundamental long-term problem with the company: The company is using technology that is about 10 years old. The company’s management team does not execute well (partially indicated by the dated technology). Based on past history, there is little long-term gain in this stock, and the downside risk is sizeable.
Failed Offering of ParkerVision to Broadcom: A brief summary of the failed offering to sell ParkerVision or licence D2D technology to Broadcom in 2004/2005 is presented. Other examples will be posted shortly.
Investors: The company has an eclectic set of investors, ranging from Banco del Gottardo, which has been linked to both Al-Qaeda and Saddam Hussein in the past, to the Special Situations Fund (Austin Marxe and David Greenhouse), a large hedge fund known for its pump and dump tactics. The company once had more reputable and supportive investors, such as Leucadia and National Corporation, which fully exited their investment. Wellington Management Company, which invested in June 2000 at the peak of the stock price, has continued to increase its position, and support the stock. Update - as of Feb 2008, Wellington has decreased their position for two quarters in a row, i.e. the quarters ending 9/31/2007 and 12/31/2007.
Minutes of Past Earnings Calls: Finally, the financial site contains our transcriptions of the last 12 months of ParkerVision earnings calls. These will be updated on an ongoing basis.