RE: What are WiLAN's patents worth? Part 2 I really appreciate your postings CKIII. They help restore a measure of calm to the forum. I guess the only question at this point is whether we are placing too much trust in JS's comments. I think most of us long term investors are a bit shocked by the disconnect between the current share price / negative investor sentiment and the picture of strength that JS's has been trying to convey. There has to be something wrong with this situation. Is the market completely wrong or has Jim been painting a picture that is too rosy. I honestly do not know the answer myself. It is perplexing. A CEO should not be making statements that he cannot back up, and Jim certainly wouldn't risk lying to or misleading investors.
The frustrating thing is that at present it is difficult to verify any of Jim's comments. He has simply stated that Wilan has more 4G patents than Nortel did. He has also said that every handset vendor will have to eventually take a license to the LTE patents. These are pretty big statements and lead to big expectations. But how do we verify this? For instance, how do we know that the LTE patents really read on LTE and are not just applicable to WiMAX only. There is probably a question of interpretation here. And how much should Wilan be licensing the patents for? Are they really worth 10x what Wilan originally paid for them? It is this interpretation factor that is the big thing holding us up, both in terms of applicability and licensing fees. Jim won't budge on anything and as investors we simply have to trust he has the right interpretation. The uncertainty that it is generating is why the market doesn't know how to make sense of Wilan and appropriately value it. We may very well be a $10+ stock and the market may be completely wrong here. The sad thing is that we have to rely on the court system to figure out the "right" interpretation, and that is inherently risky.