I don't post very often but it doesn't mean I am not doing DD on my investment. I think the patent and tech posts on the board are exceptional and so my post here would be in the category of conjecture and hope. Perhaps for those with a large paper loss because of JK, it will be uplifting.

There appear to be many unanswered questions about a company that should be fairly transparent outside of the legal matters. Bare with me as I connect some dots:

1) For me it starts with the oddities surrounding the Samsung settlement. I would have thought Samsung would have been the perfect poster child for a Marksman.

2) We launch the Edigital Innovation site with no content for eight months now, yet Woody Norris links to the empty site at the beginning of the year.

3) We get an upbeat conference call in the Spring about Nunchi (Korean word), SHM and possible early summer news regarding partners but it all fizzles out.

4) I provide RP and FF contact information about possible EVU opportunities and nobody follows up, even though it requires no modifications to current content.

5) Samsung cancels new smartphone unveiling in New York in May and then announces it will take place next week. Just before the Edigital SHM.

6) Today I find this obscure information about the change in how Samsung decided to create a more positive image of South Korean manufacturers. "Samsung Innovation" and getting the best from other companies as well as their own jumped out at me:

South Korean companies realized that technology played a very important role in increasing the quality of products. Previously, they relied on low and out-of-date technology that was easily obtained from the developing countries because they were not already used anymore. However, when the globalization and the market competition demanded the best quality on South Korean products, they needed more advance technology that was not easily given by the developed countries. As the result, South Korean companies became care on developing their own technology, such as by increasing the research and development (R&D) activity, building the research laboratory and developing products, and recruiting more scientists from inside and outside of the country.

Samsung applied this technology reorientation under the slogan “Innovation”. For Samsung, it means, “develop through the globalization to globalize Samsung”. Yun Jong-yong, vice president of Samsung explained the blows of “Samsung Innovation” in front of Asian Pacific Forum conference in Japan at 2003. Firstly, Samsung refused to accommodate the will from the groups that obstructed the company progress. For example, the interests of the company owners that often collided with the demand of efficiency and global competition. Secondly, the innovation was carried out in stages, begun from the points that relate the routes and the channel in the groups of the company. Therefore, the company created the atmosphere that can make each Samsung staff has self-confidence to create innovation. Thirdly, the management told about the company's perspective and target clearly to all of the employees and be ready to delegate their authority.

This Samsung innovation seems impossible if it was not supported by qualified human resources who have a good vision about the future. In Samsung Group, there was a third of 1,000 of its directors aged in 40 years or younger. Around 1,700 of its staffs were educated on a doctorate level, and amount 350 staffs have MBA degree. Most of them got education in overseas, like in United States or Europe. Samsung also revised the concept of “Samsung man” that emphasized more on the creative individual, has wide view and high moral standards.

According to Yoichi Funabashi from the Asahi Shimbun newspaper, Tokyo, the globalization also means the opportunity to get the best from other companies in order to find and develop the best from their own company. Yoichi saw Samsung had found the excellent opportunity from this globalization by constructing the synergy with the Japanese company as its competitor, Sanyo Electric Co. In 2002, Sanyo and Samsung formed the joint venture and agreed to develop future generation of technology (The Jakarta Post, August 14, 2003).

Evidently, this Sanyo-Samsung cooperation succeeds in making them found the important assets in the form of work culture in company. Satoshi Ieu, Sanyo’s CEO and Chairman realized that Sanyo and Samsung employees had different work culture when he heard Lee Kun-hee’s said, “Japanese tableware are made from ceramic. It is fragile, so Japanese treated it very carefully. But, Koreans tableware was made from metal that was not easy to break, so the Koreans have not the spirit to hold it carefully”. (Note: Compare the traditional tableware of Indonesians called 'pincuk' that is made from bananas leaves. After eating, it will be thrown away. It possibly causes the carelessness of Indonesians compare with the Koreans? -The writer)

Satoshi Ieu was really impressed with Lee Kun-hee’s observation. Then, the cooperation between Sanyo and Samsung were extended covered the redefining of work culture and corporate culture, especially their respective experience in dealing with the globalization. The co-operation between Samsung and Sanyo, two foremost business groups in South Korea and Japan, simply was the result of a conviction that if two companies combined their power, they will receive the new values and power to deal with globalization.

The way Samsung in responding to globalization and the process of Samsung globalization destroyed Flying Geese theory that was created by Professor Kaname Akamatsu saying that Japan will always be in front of other Asian nations in the process of globalization. As the world’s biggest producer of memory chips, Samsung proved that globalization always did not have a bad impact. More than that, Japan that always be in the leading position in the past, has already began to learn from other Asian countries, for example, South Korea.***

7) So why didn't they buy us? Because that is not their business model.

8) Apple and Samsung are starting to go toe to toe right now in legal terms and some of us expect that Apple is the big prize when it comes to infringers. David and Goliath in court looks like better odds to me then Goliath vs. Goliath.

IMO and I hope for all of us I am right, I think we have been waiting for Samsung on the SHM, Innovations website and Nunchi and we will have the answer next week. At least I can cross Samsung off the list next week if I am wrong.

LO