Well it certainly appears operationally that the company is finally on track. They are lean, have a new CFO and the ability to consolidate a somewhat expensive two headed co CEO position into one.

Re the suit, if SLTC wins they preserve their NOL to some extent and should receive $2 million in legal fee reimbursement.

So one can argue that if they prevail shouldnt the stock climb? I would think yes. However, the NOL poison pill points out SLTC's plight. 5% owners cant add any shares. They are kind of in limbo. One starts to think the better strategy is to find a buyer and sell.

If they lose what happens? Well they dont get reimbursed. You would think at that point Trilogy would begin adding shares but so might the other large holders. Of course, the NOL would be destroyed and then the only value of SLTC would be its software and cash. So while not great you argue that might be worth .4-.7. Still not a bad return if you been buying below .30.

I think the risk area is if you are in you have some areas of trepidation ahead. If SLTC loses the suit the short term reaction should be down, you have to wonder if tax sellers would emerge (with or without a verdict), the reverse split issue and a recovered stock market with a depressed stock (what if the market tanks again?)

I still am not sure what Trilogy would do if they win to have the pill void. If so, do they start buying from panic holders? Or would some of the other large holders do the same? Was Trilogy's goal all along to destroy the NOL and make SLTC more vulnerable to takeover? If so, would they go to SLTC with a very cheap offer? I would think so. I own a few shares of a company called ABTL. Trilogy tried to buy them on the cheap earlier this year. Cheap being they offered .35 per share for a company that had about .70 per share cash at the time. As soon as Trilogy realized mgm didnt want to sell and that most shareholders werent interested either Trilogy immediately sold their shares and left. (note Trilogy bought a 5% position at about .50 before the .35 offer, probably willing to up their offer a bit but it was obvious no one was going for that either; one further note is that ABTL is at .81 today)

Trilogy walks a fine line. They weaken SLTC and who is the biggest creditor of the company, its Trilogy.

So the stock price could be very violatile over the next six months. If you arent prepared for that you better be on the sidelines.