Semiconductor group has had a very difficult time over the last number of months. Studies show that only 20% of semiconductor stocks have a positive price trend and the rest have been selling off. He looks for sectors that have sold off, but wants individual stocks that despite the weakness did not go down. This is not one of those companies.
Wi-Lan (WIN-T) is attempting a takeover. Offer to expire on Nov 1st. If nothing happens, he presumes the price on the stock will come off but it is still a good company to hold. He thinks there is another offer coming.
Will open higher than $38 tomorrow. Let it pop tomorrow, let it dance around and buy half and then the other half in 5 or 6 days. Enjoy the ride over the next 90 days.
Patent Company. $300 market cap with $100 million cash. 20% growth per year, 3%+ dividend with potential to increase. Good pipeline of potential deals. Google is willing to pay $4 billion for Nortel patents.
Prefers Wi-Lan (WIN-T), which has a better currency right now. This company is seen more as a defensive play as opposed to a growth company. There is also a bit of a management overlap right now. Good name to get into under $25.
Did a phenomenal job of converting from a semi conductor manufacturer into an intellectual property company diversified between the semiconductor DRAM side and the wireless side. Has about $8 a share in cash and pays a 3% dividend. Fully valued.
Just signed Texas Instruments and IBM to intellectual property agreements. Will probably earn $3 this year. Earnings keep coming through so stock is cheap. $130 million in cash. Management does a great job in under promising and over delivering. 3.5% yield.