Were all invested in a company with exponential potential.
I firmly believe that it is just "common sense" that the rest of the market (the institutional investors/funds) will soon realize this as well. I've tried to summarize my reasoning for this in the following 8 thoughts.(all JMHO)
1) The 6/27 Nortel auction will certainly shed some new light on the true "value" of the IP world, and will be a nice wake-up call. (ie..what if Nortel patents do end up fetching $2.5 billion, or more?). There is bound to be some upward "IP value perception and/or assessment" thereafter of Wilan's own patents going forward, particularly given the fact that Wilan's business model is a well oiled machine without the "lumpiness" of others in our sector, and we have a number of huge settlements still pending..
2) The S&P 500 TSX index inclusion (officially on 6/20) may well continue to necessitate more institutional/fund buying, which essentially will "take shares out of the market", further mitigating some of the "weak hands" of some of the existing shareholders. It will be interesting to see if any "carryover" from Friday's last minute and highly unusual volume on both TSX (8 million+/-)and Nasdaq (400,000+/-) will flow into next week in general and on Monday in particular.
3) At some point "soon", Jim Skippen will have to announce the "interesting" acquisitions intended for that $200 miilion cash warchest. Wilan now has aslmost 25% of it's market cap in cash, and the investment community is surely interested in what will happen with that $200 million currently just a "pedestrian" return of interest. In my opinion, our CEO will have "under-promised and overdelivered" when this announcement is finally made public.
4) Could there be an "an alliance"...or "partnership" with "whoever" on "some" of the world class Nortel patents?...Who knows for sure?...The U.S. Justice Department has already raised an eyebrow and dangled a sword as it relates to the issue surrounding either Google...Apple...or Microsoft's ability to have an "unfair" advantage going forward should either one of them "ultimately" take possession of the entire portfoliol in one fell swoop. The winner may have already decided "in advance" to form an agreement with a "lesser" company' to "hand off" different portions of various patent baskets in order to proactively "preempt and USDOJ future "interference".. Who knows?
5) As mentioned in point #3, a significant and interesting acquisition proclaimed by CEO Jim Skippen in the "not too distant future" is still out waiting to be fulfilled, and I'm relatively sure he wasn't talking about either of the Poynt/01 Communique announcements involving Gladios, although those 2 agreements would not have been crafted had our skilled management not surmised that the return on those patents would further accelerate revenues at an acceptable cost.
6) The company is presently valued "significantly" below the multiples of others in their peer group...that will obviously change soon.
7) There are still a number of "very significant settlements" still pending. The delayed timing of these settlements may have actually worked to Wilan's advantage given the "correction" after the Nasdaq listing and the logical assumption that the 6/27 Nortel auction may "raise the bar" on Wilan's own pending settlements with Apple, Dell, HP, Comcast, Time Warner, etal.
8) Wilan is basically a very "lean" company. With only 40 employees, the bulk of our employees are esoterically skilled in the legal/technical/IP arena. With an existing revenue ratio of $2.5 million per employee and a recent history of mitigating legal expenses, our 5-6 year revenue model with contracts with "quarterly fixed payments" and/or "per unit" revenue , should become highly appealing to those who finally discover our own little jewel. Wilan is in the "sweet spot" of mobile techmology and more.
All JMHO...
John/jtdiii
AI
