TI settlement - guidance probably goes upAccording to a CIBC research report, the estimated value of the TI deal should be around 67M - not a small sum of change boys. If we take a scenario of 60M over 6 years, that gives 10M/yr. With Wi-lan's high operating leverage, lets say 70% goes to the bottom line, totalling 7M. Given 122M s/o, that gives an estimated additional EPS of 0.057, coupled with a conservative multiple of 12, equals
.68. As of right now, the sp is up
.66.
But with all the potential catalysts in the pipeline this year with LG and next year with 3GPP and Cable, and likely Gladios early 2013, wi-lan is very cheap.
007YG