Quarterhill Inc (QTRH.TO)

Recently looked at this to see what the actual cash earnings are realized they are not really making as much money as he had thought. They don’t make enough in the good years to justify the bad years.

Is not doing well. In a distinct downward trend and has not shown signs of bottoming. Trades below 20 day moving average, relative strength is negative. This is a distinct sell signal.

(A Top Pick Dec 29/11. Down 19.11%.) 2013 had better be a good year for them because there are a lot of catalysts coming up. 2013 is really the “show me” time for this story. Still likes the story. If he sees that the Markman story is not going well in February, he would be a little bit concerned. Have $1.65 in cash on their balance sheet so this is a good entry point. 3.1% dividend yield, which they had been increasing. Management has been buying back quite a few shares in the first 2 weeks of December. Watch the Markman story.

Reported last week and it wasn’t a fantastic quarter. They ramped up litigation expenses. This will eventually play out in the 4G space as it did in the 3G space.

Have a good library of patents. Extremely well run. When they do win, the revenues tend to be spread out over many years. There is no very high drama. 2.4% dividend.

With patents it is the leading company in this space. At this level it is good value. $2.80 in cash. This stock tends to be news-driven, so could stay here for some time. Be patient. It has built a pretty good base.

(A Top Pick Aug 29/11. Down 21.73%.) Have started to recover over the last 8 weeks. People are anticipating some deals being signed early next year because they are going to trial with a number of handset makers. Still likes the story. Great balance sheet. Raised its dividends. Good earnings. Still a Buy.

His view on the tech sector is quite negative because of what is going on in Europe and China. However, this company’s business should be shielded from that to some extent. They are developing a pretty diversified range of patents. Likes it at this price. As long as they continue to deliver on the fundamentals, he’ll probably add to his position.

(Top Pick Aug 26/11, Down 27%) He sold. Buy if it goes up 5%. He is going to add it back. Needs to see it north of $5.05 on an above average volume.

Trend is not your friend on this one. There may be a little bit of a base happening and technology can take off in the later quarter of the year, but he does not like the broader pattern. Move out and look for a better chart.

Not a business that he finds that attractive. It is like chasing ambulances. Pays a nice dividend that management thinks is sustainable.

(Top Pick Dec 29/11, Down 10.95%) Still likes it. In a quiet period. 2013 will be a big yea for them. 35% of market cap is in cash. 2.4% yield

Probably on the slow course but a very good company dealing in the world of patents and now joining with other companies which are attempting to ward off other patent threats. You'll have to be patient but it will probably do well. Good management.