Gold and Equities VS the U.S. Dollar - US Treasuries are not a safe place to be!

Image by Getty Images via @daylifeI know that, when everyone starts to panic, most investors see the U.S. dollar as a safe haven. This week investors are piling into U.S. Treasuries as they have in the past during past times of fear and uncertainty. The problems in Europe have shaken confidence and the market plumeted yesterday on those fears. It would appear that, what the market has not done, is price in any hopeful sign that the European Union might actually come up with a plan similiar to the U.S. T.A.R.P. plan, which, in hindsight, was very positive for U.S. stocks, and which did not lose any money for taxpayers in the long run.  If the E.U. comes up with such a plan in the near term, there could be a dramatic pop in markets that are currently ruled by fear. There seems to be no pricing in of any good news that may eminate from Europe in the coming week(s).

In the mean time, the best "safe haven" of recent years, gold bullion, and by proxy, gold miners, have taken a beating this week. They have taken a beating only if you consider the price of gold over the course of the past month where bullion prices spiked as high as $1900. Compared to the rest of 2011, gold is still up a healthy 20% or more. It is only back to mid July prices.  That, my friends, is a healthy pullback, not This is not 2008 all over again. The fear is overblown. It may well be 2009 all over again as equities test those "generational lows" once again. I know this may be a contrary view, when compared with many market followers, but if I am right, this is the time to take the advice of Warren Buffett who famously said "buy when all others are fearful".

I am a buyer right now. A buyer of select equities in tech and pharma. A buyer of gold miners. A buyer of top Lithium miners. A buyer of select Canadian banks. If things go lower, I will buy more. Today I doubled down on small and mid tier gold miners like San Gold, and Brigus Gold. I even bought speculative stocks like TNR Gold and Nautilus Minerals. I bought more Talison Lithium. I bought more Rodinia Lithium.

I like Cenovus Energy and Suncor in the oil sector, TD Bank, RBC and BMO in banking.
I even like Manulife Financial as they are trading at an all time low this week. I like solid Techs like Intel, Microsoft, Apple and Google. I am watching HP since they announced thier new CEO today, Meg Whitman. I think there are great buys out there, and I am taking advantage of the irrational fear as everyone runs to the not so safe haven of the U.S. dollar.

I do not like the prospects for the American dollar, the Euro or, for that matter, most fiat currencies. Gold is bought and sold by central banks around the world, and it would not surprise me to hear in the coming weeks that countries like Italy have sold some of their gold stocks to pay down debt. Certainly that would account for the current weakness in bullion prices, which will rebound as fiat currencies, including the USD once again, lose favor with investors.

No one has a crystal ball, least of all this writer. However, it is those investors who seize the moment, who most often come out ahead of the herd. I hope you are one of those.

Happy investing.HP

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A marriage in the mobile web space could produce the power couple of power couples.

Marriages, by their very nature, can be rocky relationships. Arguments, diversions and power trips, money problems and hurt feelings can result in an ugly divorce.

Marriages can also bring together soul mates who bring out the best in each other, and all those around them, while producing strong offspring and enhancing their neighborhood and their community.

Image via CrunchBaseResearch in Motion (RIM-TSE) has been somewhat of a scorned bride this year.  The investing public used to be entirely enamoured of her technology charms and her extensive cash dowry, but of late, there has been money problems (share price drop).

The dark horse of mobile web technology

Image via Wikipedia

Wilan Technologies has been one of our favorite stocks since it began refocusing from it's 1990's technology development and now is focused almost entirely on licensing and defending it's many patents in wireless, internet and video. We have been acquiring more of this stock for the past 9 months.

Today this stock rose 11%, and we feel it is just the start of a realization of some tech investors that it is truly a "patently valuable company for the 21st century"! Most Wilan technologies were developed over 15 years ago, but the company is only now being recognized as holding the underlying patents for many of today's top tech toys and business applications.

Over the past two years (Since it has been aggressively protecting it's patents and licensing it's technology) Wilan has signed licensing agreements with 212 tech companies worldwide including many of the biggest brand names as shown here:

This year, 19 more companies, including Apple, will be forced in a Texas Court Case, to either pay for their past transgressions involving these patents, or to license them from Wilan.

Wilan inventions include:

3G Cellular– A range of wireless communication technologies used in modern cellular handsets.

Bluetooth^TM – A wireless technology that sends and receives data over short distances, creating a personal area network (PAN).

DOCSIS – A standards-based technology to provide high-speed internet and other data over coaxial cable networks.

DSL – A standards-based access technology that provides broadband Internet access over twisted pair telecommunications wiring.

Wi-Fi – The underlying technology of wireless local area networks and other products based on IEEE 802.11 specifications.

WiMAX – Broadband wireless technology that provides longer-range wireless connectivity based on IEEE 802.16 specifications.

V-Chip – A technology that allows users of multimedia devices to filter out programming they consider inappropriate for their children to watch, whether that be from a television broadcast, DVD/VCR/DVDR or computers that have the ability to receive and process broadcast signals.

Wilan has been making money throughout 2009, in the toughest market conditions, is expanding it's business monthly, increasing cash flow and profit and began paying a dividend in 2009. It's management is completely focused, motivated and is professionally suited to the task of increasing shareholder value.

As I have said for the past six months, we believe Wilan is at least a $10 Stock (probably more) and it is still trading under $3. Last month we doubled down on our investment in Wilan Technologies, even though our initial purchase was already up over 65%. We initially bought Wilan at 1.45, doubled down at 2.40, bought more at 2.94, 3.00 and 3.01

This stock is going much higher. Don't wait!

Related: Wilan signs 212th licensing agreement

Analysts: 4 Buy 2 Strong buy

Update: Feb 9/2010 Buy Recommendation

Update March 3rd 2010 - Financial Post - Wilan on verge of Windfall!

Important date for Wilan Technologies: March 11th 2010 - Texas court case - Markham hearing, where a who's who of major companies, including Apple Inc., Dell Inc., Hewlett-Packard, Intel Corp., Sony Corp. and retail chains such as Best Buy Co. Inc. and Circuit City Stores Inc.will find out how much they have infringed Wilan's patents. Look for a settlement and possible licensing agreements which will bolster Wilan's bottom line.

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Microsoft ordered to pay $490M in Patent infringement case.

Image via CrunchBase

A small Canadian technology firm, i4iLP , is being heralded as the "David" who took Goliath to court and won. Microsoft was ordered to pay i4i $290 Million in a Texas court for infringing i4i's patents in xml, as they were utilized in it's MS word product. Not only has the court found in favor of i4i and ordered the reward, but it has also ordered Microsoft "not to sell" MS Word in the United States.

The case is: i4i Limited Partnership and Infrastructures for Information Inc vs Microsoft Corp, U.S. District Court, Eastern District of Texas, Tyler Division, No. 6:07CV113.

This case is not unlike a similar Texas court case involving another small Canadian Company, Wilan Technology Inc , who has sued 20 major wireless companies including Apple and Intel, for infringing on it's many wireless patents for Wimax, Wifi and other applications.

Wilan , (WIN/TSX) traded yesterday at $2.18 per share. It has already won patent infringement lawsuits against other wireless companies and has signed licensing agreements with 180 Tech companies over the past two years. I happen to believe it is extremely undervalued. that is why I increased my position this spring by over tenfold.

Some legitimate bloggers (and some infringing companies disguised as bloggers) like to vilify such companies, calling them "patent trolls" etc. however in these two cases, they would be wrong. In both cases the companies were started up in the early 90's by serious techies with great ideas, who created great technology but didn't have the legal know how or resources to protect their intellectual property.

It appears that i4i took a patient route in protecting their xml technology against the infringing company, Microsoft. Wilan's problem was that, because it owns so many of the underlying patents for current wireless technology, (over 550 patents) that many companies would not have the products they have (blackberry, ipod etc) had they not infringed on Wilan's patents. Because of this, two years ago, Wilan replaced it's tech centric CEO with a top U.S. patent lawyer, Jim Skippen, and from that moment on, a professional team was put into place to go after the infringing companies.

The first results have been many licensing agreements with the likes of RIM (Blackberry), Nokia, Westinghouse, Agilent, TigerDirect, Casio, Infinion, Samsung, Fujitsu and many more companies who were infringing on it's patents. 20 others, including some of the largest like Intel, Apple, Motorola, Broadcom, Acer, Marvell and Sony, are currently in a Texas court trying to fend off the inevitable.

The Patents number 550 and include: (from http://Wilan.com)

CDMA – A third generation wireless platform

DOCSIS – A standards-based technology to provide high speed internet and other data over coaxial cable networks

DSL – A standards-based access technology that provides broadband Internet access over twisted pair telecommunications wiring

Wi-Fi - The underlying technology of wireless local area networks and other products based on IEEE 802.11 specifications

WiMAX (4G) – Broadband wireless technology that provides longer-range wireless connectivity based on IEEE 802.16 specifications

V-Chip – The V-Chip patents allow the user of multimedia devices to filter out programming they consider inappropriate for their children to watch, whether that be from a Television broadcast, DVD/VCR/DVDR or Computers that have the ability to receive and process broadcast signals. The Federal Communications Commission has mandated that the V-Chip be included in all digital television receivers and digital reception devices offered for sale in the United States.

A number of followers, including this writer, believe that Wilan will be trading between $5 and $10 by the end of the year. Personally I think it is a $25 stock in waiting. that is why I have increased my holdings so much. It now pays dividends, albeit small, but the outlook for years to come is very bright. It owns great technology, has a dedicated hard working management team, has increased it's income solidly during the worst financial crisis since WW2 and it continues to sign dozens of new licensees every month.

Caution, don't invest in this or "any" company based on what you read in blogs. Do your own research, and consult with an experienced investment adviser before you buy any stock or mutual fund and always remember:

"Look after the pennies, and dollars will look after themselves"!

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A "Patently Valuable" company for the 21st Century

Image by zone41 via Flickr

From the laptop to the palm. From the Blackberry to the Iphone. RIM, Apple, Google, Intel! In every country, in every business, and in every home, wireless technology is sweeping over the planet.

While investors clamor for a piece of Research in Motion (RIM) or Apple, a small Canadian company may emerge as the dark horse in wireless investing.

Wilan Technologies (win-tsx) of Ottawa, has been quietly increasing in value this spring, on the strength of it's wireless , Wi-Fi, Wimax, VChip and other patents. As of April 30th, the firm had signed 62 wireless and 112 V-chip licenses with 180 tech companies worldwide, for the use of it's patented technology.

Recent licenses for Wilan's patented technology have been signed by: Samsung, RIM, Infinion, Nokia, Fujitsu, Westinghouse, Red Line Communications, Pantech and many others. At present, Intel, Apple, LG and 18 other companies are currently in a Texas Court trying to stem the inevitable.

With almost 550 patents for the underlying technology for many wireless and other applications, such as cdma, docsis, wi-fi, wi-max, v chip, bluetooth, etc. etc, it is no wonder that investors are waking up to the value in this small Canadian company.

Wilan has increased it's earnings projections three times this year, and has announced it will start paying dividends to shareholders who are shareholders of note on June 29th.

As I pointed out in past posts , I have held the stock for over 9 years, but this year, because of this great story, I increased my holdings 10 fold. That was in March.

Last week I "doubled down" on that!

WILAN advises it has licensed its patented, intellectual property to over 180 companies worldwide.

This from the company this week: "Inventions in our portfolio have been licensed by companies that manufacture or sell a wide range of communication and consumer electronics products including 3G cellular handsets, Wi-Fi-enabled laptops, Wi-Fi/DSL routers, xDSL infrastructure equipment, WiMAX base stations and digital televisions. Wi-LAN has a large and growing portfolio of more than 550 issued or pending patents ".

All this is happening in the middle of the worst recession since WW2. Management has a large stake in their own company, are increasing their patent portfolio, are fierce protectors of their patents, and they are making money! Now they are paying dividends which can only grow in the coming years.

I won't be selling my Wilan stock any time soon. It has too much upside. I will be buying on the dips, which, due to it's recent upswing, may come as early as this week, and I will do this "before" Wilan gets listed on NASDAQ or another U.S. exchange. Once that happens, there will only be one way to go, and that is straight up. Even without a NASDAQ listing, this is a $10 stock trading currently at $2.

Previous Articles

My favorite company!
Wilan Technologies

Commentaries from other sites/sources about Wilan Technologies!

Business Week
GlobeInvestor
TeleClick
Wimax.com
Reuters

Update June 24th 2009 Casio Licenses Wilan Technology

June 29th Wall Street Journal Canada's Hot Stocks

Update Sept 3/09 Wilan Technologies long term rosy outlook Canadian Press!

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This smart company is making the big guns of wireless pay dearly!

Image via Wikipedia

Two weeks ago, I mentioned I ran across a recommendation by Greg Reid CFA, at Silicon Investor regarding Wi-Lan Technologies Inc. WIN-TSX

I mentioned that I had increased our holdings in Wi-Lan by a factor of 10. I did that in Early March and since that time (approx 90 days) we have made a paper profit of 33%.

Now 33% is a great rate of return over 3 years, let alone 3 months!

You might expect that I would sell that stock and solidify my returns, but you would be wrong.

You see, I have been following Wilan for years, since the time it was a manufacturer of high tech gear for the internet economy such as cdma, wireless lan, Docsis, dsl, wi-fi, wi-max, and the V-chip, among many others. Currently, Over 550 patents are now held by a WiLan Technologies .

I have owned the stock for about 9 years.

Now it is time to reap the rewards of that patience! You see, several years ago, the management/Board at Wilan realized that their true value lay in their intellectual property in the form of patents for many wireless functions which have since been adopted by such firms as: Research in Motion, Motorola, Intel, Apple, Infinion, D-link, Acer, Westel, Broadcom, Marvell, and Sony, and many other companies who use wireless technologies from Cell phones to laptops and smart phones.

The company replaced their "Tech Centric" CEO, with one of America's best ligation, patent lawyers, Jim Skippen, less than two years ago. An Entire team was then hired to ensure the leveraging of those patent assets. Since that time, Wi-Lan has signed licensing contracts with many high tech, high flyers, such as RIM, Motorola, Samsung, Westinghouse, Casio, TigerDirect, Infinion, etc, and is signing many more at a dizzying rate.

There are some holdouts such as Intel, Motorola (LG) etc, but they are in a Texas Court at this writing, trying to fight off the inevitable.

The bottom line is that, Many of the worlds tech and wireless companies, including the biggest, will be licensing Wi-Lan Technology for many years to come.

Although many investors are actually day traders, I subscribe to the "Buffett" theory that patience is a virtue.

I won't sell my stake in WiLan anytime soon for several reasons. First, many industry experts feel that Wilan (now trading in the $2 range) is at very least, a $10 stock. Some believe that $20-$25 is more in line with future growth as these patent licenses pay off month after month from here on in. Second, I will be very surprised if I don't get a return in the 1,000 % range, this year!

That is why I bought the stock 9 years ago!
That is why I increased my holdings 10 fold in March!
That is why I am going to "double down" on that bet sometime today!

Update June 11 - up 58% - Wilan trading at 2.45 today. bids 300% higher than asks.
As of April 30, the firm had signed 62 wireless and 112 V-chip licences with over 100 companies.

Article from the Ottawa Citizen Valuable Company

Update June 25th - Wilan Dips. Buying more! Will buy on the dips!

Other commentaries from other sites/sources about Wilan Technologies!

Business Week
GlobeInvestor
TeleClick
Wimax.com
Reuters

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