Recently $3.20 has been the ceiling for the stock and it has retraced from around those levels at least thrice in the past few years. Presently it is trading above the 200 DMA of $1.69 but remains below the 50 DMA of $2.12. The 52 week high is $3.19, and it has been on a down trend since then. It rebounded after hitting the recent lows of $1.17 and despite the correction from $2.37, the stock is still up by around 59% from those levels. However, the volumes have died down and the momentum seems to be slowing down. The 3 month average volume is nearly 400K shares as compared with only 214K for the 10 day average figure. UPIP has developed some of the first programs for mobile browsing and photo-messaging as well as the very first Wireless Application Protocol (WAP). Major companies like Sprint (NYE: S) and Telus (NYSE: TU) use its technology but the problem is that the inventions have not been patented properly. So it is difficult to enforce any license agreement or patent infringements. The recent uptrend in the stock was perhaps based the investments made by Uunwired in collecting the patents of its old inventions. WAP is the basic technology which connects mobiles to the internet so the potential is huge. However, enforcements require deep pockets or backing of investors who have faith in the potential of monetization of Unwired's patents. These specialist investors not only provide funds, but also know their way in achieving optimum value for the patents. Recently several big companies have been sued by smaller companies who own valuable patents. Facebook (FB), LinkedIn (LNKD) and others have been sued by a Document Security System (NYSE:DSS) subsidiary for infringement of patent rights. Allegedly, these technologies are the essence of Facebook experience and hence, respected analysts like JP Moreno are valuing the potential damages / royalties in millions. UPIP should be encouraged by these developments.
