The stock has been a bit buoyant recently, and has appreciated by more than 11% over the last one month. A major portion of this upward movement has come over the last 5 days, and the volumes have also been high. The momentum can take it a bit higher, but lack of support from fundamentals may lead to selling at higher levels. Over the last few weeks the news has not been too positive. Google has asked for invalidation of the two mobile advertising patents for which Unwired had sued it last year. Google is contending that both are abstract ideas that cannot be patented. Also, Unwired recently announced appointment of Grant Thornton as its independent registered public accounting firm beginning for its first quarter ended September 30, 2013. The decision to dismiss KPMG and to engage Grant Thornton was recommended by the Audit Committee of the Company’s Board of Directors. The related SEC filing mentions that KPMG’s report indicates that the Company did not maintain effective internal control over financial reporting as of June 30, 2013. The controls did not operate effectively due to a lack of resources with experience in financial reporting. This is perhaps indicative of the quality of personnel in that department, and nothing more than that. The real issue is being able to show progress related to its patent monetizing efforts. IPR monetization is huge business now, and more and more companies are asserting their rights. As an example, Spherix (SPEX), a full service IP company has recently built up a diversified portfolio comprising of hundreds of patents. It has filed lawsuits against big companies like T-Mobile (TMUS) within a few months of transformation to a patent asserting entity. Unwired has the potential, and the resources have improved. However, something special needs to happen quickly to bolster the stocks fortunes.
