Monday, July 15, 2013

The Wi-Lan Torpedo

A quote from Bloomberg Jul 15, 2013 6:01 PM ET BREAKING NEWS Wi-Lan Plunges on Trial Loss to Ericsson, Alcatel-Lucent  Wi-Lan Inc., (WIN) a Canadian owner of patents for technology used in mobile phones, plunged the most in seven years after it lost a U.S. patent-infringement trial against Alcatel-Lucent and Ericsson AB. (ERIC).
Wi-Lan fell $1.47, or 31 percent, to $3.25 for the biggest one-day drop since May 2006 and its lowest price since September 2010. In a statement, Ottawa-based Wi-Lan said it was disappointed and reviewing its options with its lawyers.

This is a quote from Bill Carrigan May 27, 2013 “Don’t Buy” This is a company that makes a living through litigation. Fundamentally he does not care for this kind of business. Technically, it is not showing up well. There are better places to be.

On July 11, 2013 Peter Imhof, Investment Strategist at Sprott Small Cap Equity rated the stock as a “strong buy” and I quote from “Starting to come to fruition.  Largest contract Wi-Lan has ever signed.  Thinks they will settle out of court.  95% do.  Thinks they will win.  46% upside from here.  Samsung deal is the largest they have ever signed.  Will move up when you see quarterly earnings”

The real problem was disclosure.  Was this guy talking his book? 

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