RETIRE.FUND: Research In Motion

Showing posts with label Research In Motion. Show all posts

Thursday, December 9, 2010

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 representing Research In Motion as depic...

Image via CrunchBase Research 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).

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"!

Sunday, August 16, 2009

How can you profit from the U.S. dollar decline! A Simple Stragegy.

Image via Wikipedia

The United States dollar is going down! The U.S. Government will be over 13 $Trillion in the hole by the end of this year. Unless something drastic is done to reduce the slide, by 2015 it will be 23 $Trillion in the hole. This summer rally , (some green shoots aside) was predicated on the back of a sinking u.s. dollar . Many American investors are so busy getting angry and waiving the flag to prop up King Dollar , that they are blinded to one of the best investment plays this year and probably through 2010.

Smart Canadians are ignoring the whining from their own Governments and businesses about a high Canadian dollar being bad for exports and they are taking advantage of a situation that Ottawa doesn't want to acknowledge. The Canadian buck will outstrip the U.S. buck over the next year. So how can you play this for the betterment of your Retirefund?

Back in January, when the Canada buck was trading for around .77 cents U.S. I traded my u.s. dollars into Canadian dollars. I have gained about 20% with this simple strategy, however there is another good market strategy that I, and many others, are making some money with. Commodities such as oil, gold, natural gas, are denominated in U.S. dollars. If you bought some of these commodities, with your Canadian dollars, back in March, you have no doubt made good money.

Now, many Americans, whose pride (and pocketbooks) have taken a big hit during this dramatic downturn in their economy, are championing the return of King Dollar. Can't blame them. If your house is losing value, and your dollar is losing value, and the Gluttons of Wall Street have swallowed a good portion of your retirement funds, you are definitely in jam. However, average Americans are once again being led down the garden path into believing their dollar will go higher over the next few years. Feeding those false hopes, every time the dollar goes up a bit (as it did on Monday) the talking bull heads on CNBC (Kudlow, Kneale etc) waive the flag and declare the return of King dollar. I believe they couldn't be more wrong.

In fact, I am so convinced of this that, when I see a rise in the U.S. dollar, and a corresponding drop in our commodities market, I see it as a great buying opportunity for those commodities, especially if you are paying for your shares in Canadian dollars. As I have pointed out before, we have had the best balance sheet of the G20 for the past 8 years (We've been in the black until the crisis hit this year) Our banks have stayed conservative, avoiding the toxic Derivatives debacle and have entered this summer rally strong. We have the second largest deposits of oil and natural gas in the world, the largest deposits of potash, lumber, gypsum, seafood, nickel, uranium and arguably, diamonds. We own 20% of the worlds entire supply of fresh water, with only .03% of it's population. We own the largest claim to the arctic, which is suspected to harbor 25% of the total world's oil supply, and finally, the largest consumer on the planet, is right next door.

Don't get me wrong though. The Canadian dollar and commodities market is by no means the only place with good value these days. They will go sideways for the next month or so, but by the end of the year the Loonie will approach parity. The BRIC countries , or at least two of them, are good investments. (Except China for the rest of this year) The Australian dollar, who's commodities feed into the Chinese economic realm may also be a good bet. We have some excellent, small Canadian companies that are basically overlooked south of the border, until they dominate a market (RIM). They are essentially, under the radar, so to speak. Find them, research them thoroughly, ensure they have good management, good science and technology , and then don't be afraid to invest. You could hit the RIM of 2010-2011!

If you are American, you should be in the stock market right now. Having cash, or cash equivalents sitting on the sidelines for any length of time is a recipe for losses, period! Sadly, the gluttons of wall street are the ones who will actually benefit from the dollar crisis they have caused. Stock Markets go up as currency devalues. It is actually that simple.

The Canadian Government and Canadian manufacturing don't want a strong Canada buck, but they won't have any choice in the matter. It is time our manufacturing and export companies grow because of innovation instead of a weak currency. Those days are gone.

A Canadian buck with a 5-8% premium over the U.S. dollar (a la the 1950's and 60's), is a Loonie I can live with. All of our retirement funds, and our travel budgets, have gone up over 20% this year because of it. The Loonie now buys 20% more than it did 6 months ago. It will go higher still. Here is a quote from Warren Buffett from his "The Greenback Effect"!

"The world "properly" worries about greenhouse emissions causing global warming", says Buffett. "Unchecked carbon emissions will likely cause icebergs to melt. Unchecked greenback emissions will certainly cause the purchasing power of currency to melt. The dollar's destiny lies with Congress."

Previous articles: U.S. Dollar dives - Pigs at the trough

Update - Aug 18th from Bloomberg .

Thursday, June 11, 2009

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.

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!

Friday, June 5, 2009

You got to know when to hold em, Know when to fold em, know when to walk away, and Know when to DOUBLE DOWN!

Image by Getty Images via Daylife

(My apologies to Kenny Rogers)

Because of events occurring this week, I decided today to "Double Down" on my favorite stock. In a previous post I told you that three months ago, I increased my holdings by a factor of ten. Now that's a lot of optimism, but there is good reason for it.

My favorite stock holds 520 technology patents mostly in Wireless, and traded (at least on Friday) under $2 per share.

They own the underlying patents for Wi-Fi, Wi-Max, cdma, docsis, DSL, V-chip Bluetooth, and many other wireless applications.

Just this year, they have signed 27 companies to licensing agreements including such high tech darlings as Research in Motion (RIM), Infinion, Westinghouse, Pantech, and Samsung. Most of these are for long term Royalties. If a company is using wireless technology, anywhere in the world, they will need to sign similar agreements.

On top of that, this small, Canadian company has a strong cash position, very little overhead, earnings increasing every month, and they just announced their first "Dividend distribution", for shareholders who are shareholders of note on June 29th.

Now, can you guess who my favorite company is?

Have a great weekend!

Update June 9th 09 - My favorite stock jumped 19% today! I believe this is just the beginning!

Wednesday, June 3, 2009

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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