RE: "Big Paydays Merit Patience"
Good morning,
Last night ONE-T announced that Judge Hilton has scheduled a case management hearing on October 19th, 2012. This announcement is very positive in that the LogMeIn trial could be scheduled as soon as December of this year. We believe investors should be buying the stock ahead of the trial as 90% of cases settle before trial. We believe the LogMeIn settlement could be worth over $100 million for ONE and currently the market cap of the company is only $66 million. If successful with LogMeIn we believe there are other large technology bellwethers (like Citrix) that will need to license the technology. We believe the stock will move materially higher and begin to reflect more of the potential from these other licensees if LogMeIn takes a license. Our $2.80 price target is based on a DCF, which assumes that LogMeIn takes a license this year and Citrix signs a licence next year. We believe the patent reads onto other markets like web conferencing, VoIP and online gaming.
Investors should be buying the stock now given the strength of the trial, which to date has been extremely one-side in ONE-T’s favour.
Attached is our note from this morning as well as the order from the Judge.
Sean
Sean Peasgood - Technology Analyst