I recently purchased Xpel Technologies at $.85 on the major sell-off last week after 3M filed its lawsuit against the company for patent infringement. I decided today to sell and lock in a 29% gain as I concluded that I do not care to live through the drama of the next few years as this lawsuit plays out. I have been down this road before with other companies and it is a wild roller-coaster. I would rather own companies where this kind of distraction/drama is not present.
It's very possible that Xpel could be trading at $2 in the blink of an eye, or perhaps at $.50 if things quickly turn against the company as the lawsuit plays out. The only certainty is that the company will lose focus on its day to day business and that this lawsuit will cost the company a lot of money and distraction.
If you are currently invested in Xpel I am by no means suggesting you sell your position, but I am suggesting that you decide whether or not you have enough conviction in Xpel as a company to commit yourself to owning the company through the ups and downs in the months and years ahead. I, for one, do not have this level of conviction in Xpel.
In conclusion, instead of being dragged into the weeds of this lawsuit I would rather be invested in another company that will allow me to sleep better at night.