Mereja

Author: Jamie Sturgeon

  • New litigation signals buying opportunity at Wi-LAN: Wellington West

    Wi-LAN Inc. (WIN/TSX), the tiny Ottawa-based licensor of technology patents, has taken some major wireless players to court over a dispute surrounding a single Bluetooth patent. The company claims Apple, Sony, Motorola and others "continue" to infringe on its patent, which assists in enabling short-range communication between smartphones and other mobile devices, and moved Thursday to sue in an eastern Texas court. Sean Peasgood, analyst at Wellington West Capital Markets Inc. believes the move is "further evidence" that Wi-LAN is confident financial settlements will follow, and told clients the stock, trading at a modest 12% premium to his base case valuation, is now a Strong Buy. His 12-month price target is $3.70, or a yield of more than 30% from Thursday's trading price.

    Jamie Sturgeon

  • Dividend hike likely at BCE: NBF analyst

    Senior management for BCE Inc. provided an optimistic if cautious outlook for the telecommunications giant's financial performance this year on an earnings call with analysts on Thursday.

    Despite a forecast for a tepid economic recovery in the first half of 2010 as well as increasing wireless competition from the Montreal firm, analysts on the call came away bullish on BCE's ability to deliver another hike to its dividend based on its full-year guidance.

    "Management and the board remain committed to dividend growth, which we think means a possible dividend increase in mid-late 2010," wrote National Bank Financial's Greg MacDonald in a research note. "If the company can execute at the high end of guidance, then the chance of an increase… is good."

    The analyst was confident BCE (BCE/TSX) will, upgrading the stock to a Sector Outperform from Perform with a $32 price target.

    Jamie Sturgeon