Long term litigation play - Mosaid Technologies Incorporated (TSX:MSD)

This is a decent litigation play. I love litigation. It is an incredible business tool when properly used.

Check out Mosaid Technologies Incorporated (TSX:MSD). This company apparently holds the patent for IEEE 802.1 or what's more commonly know as Wi-Fi. Mosaid is ramping up to sue some fairly large companies such as Dell, RIM, and Intel. Now normally this would be such an issue as small firms in the past has tried to sue these companies for patent infringement but in this case, there is some concerning precedent such as LG corp paying licensing fees for aforementioned wireless technology. Please see the below article from market-wire and please bear in mind that litigation and court battles are very lengthy and could not be fruitful for a couple years. A long-term play seems ideal.

MOSAID Files Wireless Patent Infringement Litigation
By Marketwire - 03/17/11 - 11:45 AM EDT
OTTAWA, ONTARIO -- (Marketwire) -- 03/17/11 --

MOSAID Technologies Inc. (TSX: MSD) today announced that it has initiated wireless patent infringement litigation against the following companies: AsusTek Computer Inc.; Atheros Communications, Inc.; Canon U.S.A., Inc.; CSR plc; Dell, Inc.; Digi International Inc.; Huawei Technologies Co., Ltd.; Intel Corporation; Lexmark International, Inc.; Marvell Semiconductor, Inc.; Murata Manufacturing Co., Ltd.; Ralink Technology Corporation; Realtek Semiconductor; Research in Motion Corporation; Wasp Barcode Technologies, Ltd.; Wistron Corporation; and Venture Research, Inc. The suit was filed on March 16, 2011 in the United States District Court for the Eastern District of Texas, Marshall Division.
MOSAID believes that the companies have infringed and continue to infringe MOSAID's patents by making and selling products that comply with or implement the IEEE 802.11 family of communications standards, known as Wi-Fi. The standards-essential patents in suit are MOSAID's U.S. Patent Nos. 5,131,006; 5,151,920; 5,422,887; 5,706,428; 6,563,786 B1; and 6,992,972.
"Since 2008, we have licensed our portfolio of wireless patents and applications to 15 companies that have recognized the value of this intellectual property," said John Lindgren, President and CEO, MOSAID. "We believe that all companies offering products that implement the Wi-Fi standard require a license to our wireless patents."
About MOSAID
MOSAID Technologies Inc. is one of the world's leading intellectual property companies. MOSAID licenses patented intellectual property in the areas of semiconductors and communications systems, and develops semiconductor memory technology. MOSAID counts many of the world's largest technology companies among its licensees. Founded in 1975, MOSAID is based in Ottawa, Ontario. For more information, please visit www.mosaid.com and http://investorchannel.mosaid.com
Forward Looking Information
This document and certain other public documents incorporated by reference in this document, contain forward-looking statements to the extent they relate to MOSAID or its management, including those identified by the expressions "anticipate," "believe," "could," "estimate," "expect," "foresee," "intend," "may," "plan," "will," "would" and similar expressions. Similarly, statements in this document that describe MOSAID's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. These forward-looking statements are not historical facts, but rather reflect MOSAID's current expectations regarding future events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially from those in such forward-looking statements. Assumptions made in preparing forward-looking statements and financial guidance include, but are not limited to, the following: MOSAID's continued expansion of its patent portfolio and of its opportunities for future patent licensing revenue as a result of MOSAID's acquisition of patents from third parties and from development of new inventions; semiconductor and telecommunications product vendors continuing to infringe MOSAID's patents; the timing and amount of MOSAID's litigation expenses; MOSAID's ability to sign new patent licensees; current assumptions as to the identification of products that are unlicensed to MOSAID's wireless patents; and the timing and amount of MOSAID's Research & Development expenses.
Factors that could cause actual results to differ materially from expected results include, but are not limited to, the following: MOSAID's ability to negotiate settlements with licensees; legal rulings and/or regulatory investigations, audits or complaints having an adverse impact on the validity, enforceability, royalty rates, potential royalty rates, and strength or breadth of coverage of MOSAID's essential and/or nonessential patents (including, but not limited to, adverse results from litigation or proceedings in patent offices and government regulatory agencies in various countries around the world); judicial, legislative or regulatory changes that impair the ability of patent holders to earn licensing revenues; worldwide economic conditions and demand for technology products; economic, social, and political conditions both globally and in the countries in which MOSAID or patent licensees operate, including conflict, war and, other security risks, health conditions, possible disruptions in transportation networks and fluctuations in foreign currency exchange rates; non-payment or delays in payment by or insolvency of licensees or other debtors; variability in patent licensees' sales of licensed products; failure to maintain and enforce MOSAID's existing patent portfolio, or failure to obtain valuable patents as a result of R&D activities, or failure to acquire valuable patents from third parties; MOSAID's ability to recruit and retain skilled personnel; change in MOSAID's financial position; consolidation of MOSAID's licensees; natural events, such as severe weather and earthquakes in the locations in which MOSAID or patent licensees operate; and changes in the tax rate applicable to MOSAID as the result of changes in the tax law in the jurisdictions in which profits are determined to be earned and taxed, the outcome of tax audits and the ability to realize deferred tax assets.
Except as may be required by applicable law or stock exchange regulation, we undertake no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements. If we do update one or more forward-looking statements, no inference should be drawn that additional updates will be made with respect to those or other forward-looking statements. Additional information identifying risks and uncertainties affecting MOSAID's business and other factors that could cause MOSAID's financial results to fluctuate are contained in MOSAID's Annual Information Form, under the section entitled "Risk Factors," and in MOSAID's other public filings available online at www.sedar.com.
Contacts: MOSAID Technologies Inc. Michael Salter Senior Director, Investor Relations and Corporate Communications 613-599-9539 x1205 salter@mosaid.com

Abscense and a Warm Return

Hello all!

I just would like to thank everyone for their encouraging posts, private messages and emails I have been receiving about the Critical Mass Blog. I appologize for the abscence as life and the markets have thrown a curve ball at the Critical Mass Group and thus affected the posting frequency (or lack there of, if you will) on the Blog. Your correspondence to me over the past few weeks from many of you have really encouraged me to be more active on the blog.

For me, the blog was my way of reaching out to the financial community (in the small capacity as it is) to help provide the most accurate and relative information to my readers so that you can trade and invest with the most informed decisions possible.

I have also found that as for some of you, as my blog is a learning tool for you, it is also a learning tool for me. I value my readers feed by and oppinions that you post, message and email me and I learn from them to help broaden my knowledge of the markets.

Please stay posted as I will be posting more articles more frequently and I also am open to requests if you are looking for a specific commentary on a topic.

Thank you again and please keep in mind to read my disclaimer which applies to all posts and to understand that all investment, trading, and any other financial decisions remain solely with you.

Matthew
Critical Mass Blog

New Long Term International Play to be posted soon

Hey All,

Sorry that it has been so long since my last post. I have been extremely busy moving Critical Mass Group ahead. As posted on the Critical Mass Investments page (http://www.criticalmassgroup.com/investments), we will be launching our investment service where members can sign up for free email alerts on hot small-mid cap stocks and options. We will be providing a new website with the service where members can in addition for a small monthly fee can have access to premium alerts and privileged postings in the premium members area.

For the short run, we will be posting a long term international investment strategy for your consideration. I will be posting it in the next few days.

Please refer our blog to your friends and colleages and feel free to donate on the side bar via paypal. :)

Solid returns friends and happy trading,

Matthew Sheppard-Brown
President
Critical Mass Investments
Critical Mass Group Ltd.

Critical Mass Ventures - New Product Development

The Critical Mass Ventures division of Critical Mass Group is currently undergoing due diligence processes and patent research as it designs and develops a new product for the recreational sport and health industry. Once due diligence is completed, patent filings will commence in the coming weeks. Contact for more details.

Critical Mass Group is currently looking to raise $10,000.00 for initial capital to inject into the ventures division. Please contact me for additional details.

Matthew Sheppard-Brown
President
Critical Mass Group
msheppardbrown@criticalmassgroup.com

New Website and Launch of the Critical Mass Group

Hello all.

As most of you may have noticed, it has been quite a while since we have posted last. This economic downturn has kept us very busy as we are sure it has for most of you. You will be happy to know that we will soon begin to post again on a regular basis and rejoin our esteemed colleagues whom provide so many readers vital market information and education on a daily basis.

As well, we have finally launched the Critical Mass Group which will offer various services from consulting to private investments. We are very pleased with Critical Mass to move to the next step. We will continue to use the Critical Mass Blog to provide readers with relevant and concise market information but as well as press releases for the Critical Mass Group and its various subsidiaries.

Please Bookmark and visit the site for your consideration:

http://www.criticalmassgroup.com

Looking forward to the near future,

Matthew
Critical Mass Group

The Blackberry Storm Canadian Release. Long Term Fundamental Analysis Not So Hot For RIM.

In North America today, was the official news release of the Blackberry Storm. A sleek and sophisticated looking smart phone device, will clash in the global wireless markets against tough rival, Apple iPhone. The device will work both on GSM and CDMA networks, depending on the provider. It features 3.2 Mp camera, video recording, Haptics (a touch-response technology that lets you feel the screen and push down to make selections), horizontal and vertical screen flip, complete media features, streaming media. A very exciting new addition the the Blackberry family.

Unfortunately, the release could not have come at a worse time. With the global economy on a slowdown and the systematic failures of the United States financial markets, a massive client base of the Blackberry is drastically reduced. It is perceived that roughly 90% of the worlds major financial, banking and insurance communities trust their wireless communications to Blackberry. With the collapse of these commercial financial houses, we should see a massive reduction in RIM earnings in both handset sales, and enterprise contracts with large corporations. A confirmation of this decline is inherent in the -52% performance in the past 6 months.

Long term Put positions in the 50-40 strikes seem to be optimal.

Feeding Frenzy! Wachovia is nothing but a piece of meat...

According to the WSJ, Wells Fargo and Citi Group have struck up an agreement to tear apart Wachovia and divide the spoils among themselves. It seems very similar to two starved dog's thrown one AAA sirloin steak. This will probably have a negative impact on WB shares on Monday but with the markets where they are, who knows. 

My original position were to hold call options on WB as this institution was perceived to go back up by March. The assets being torn apart will most likely change my play on Wachovia. We shall see tomorrow morning.

O'Leary Global Equity Income Fund (TSX:OGE.UN) - Fund Equities

I'm still having a tough time finding the list of equities in the OGE.UN. What I have been researching for is an official source and not any of Google Finance's so-called savvy investors who post in the discussions. Unfortunately as of now, I still have come up with nothing. 

So below is a list of the fund's investments in no particular order that I was able to find.

1. Cosco Pacific Ltd. - http://www.coscopac.com.hk/eng/global/home.php - Shipping

2. Portugal Telecom - http://www.telecom.pt/InternetResource/PTSite/UK - Telecom

3. Fosters Group - http://www.fosters.com.au/ - Alcohol Beverage Producer

4. AES Tiete - http://www.aestiete.com.br/canal44.asp - Hydro Electric Producer

5. Suburban Propane - http://www.suburbanpropane.com/ - Consumer Propane Supplier

I will endeavor to find out more of the fund's investments. Do bear in mind that the fund is actively managed by Stanton Asset Management so changes in position are managed on a daily basis.

Happy Investing.

 

New Feasable Energy Solutions... (NYSE:FAN) - Wind ETF

Alright so this is a pretty trivial article on energy crisis and newer, less costly renewable energy products. There are countless articles, opinion's and political views of the different energy solutions to better reduce the harmful environmental impacts to the Earth's environment as well as our so called diminishing fossil fuel supply.

My favorite alternative energy technology available is definitely wind energy. I believe wind to be far more superior to the other alternatives for various reasons. Versus Solar, Wind has I higher yield of energy output with less opportunity cost of land. Wind turbines have a significantly smaller footprint than a solar matrix. With less land being consumed, the land can be used for agriculture, etc.

It's optimal compared to the bio-fuels as the bio fuels still produce carbon and the opportunity cost of the organic material (corn) used in production could be better used as livestock feed or food.

Another pro for Wind technology is that wind tech is not necessarily land-locked. Wind turbines can be erected in a floating apparatus anchored to a seabed. And advantage over solar and less costly to do than aquatic Geo-thermal technology.

To take advantage over the opportunity in Wind, you could purchase shares or calls in the Wind Energy producers or equipment manufacturers. I like the new First Trust Global Wind Energy (ETF) (NYSE:FAN). Its near it's 52 week low and is a great opportunity to get in.

New ETF Brought To My Attention (NYSE:FXI iShares FTSE/Xinhua China 25 Index)

The following ETF has caught my eye and I believe it to be a great bearish global play. iShares FTSE/Xinhua China 25 Index (NYSE:FXI) is a China play as the title obviously displays. This particular ETF correspond with the price and yield performance of the FTSE/Xinhua China 25 Index which essentially moves with the economy of the booming nation. Why it has caught my eye as a potential play is that last quarter, China saw the slowest GDP growth in the than it's had in the past six years. Now obviously this is caused by the Global Economic slowdown affecting the world economy accompanied by a reduction in global demand for Oil forecasted for the coming quarter.

The 52w low is a little over $30 and the high being $73.19. As I write this piece, the price has bounced on the September 30 market bounce after the 29th's congress financial bailout vote failed sending markets globally into a downward spiral.

China should correct soon as the American dream continues to crumble and continue positive economic growth and return in a 12-18 month period back to its highs.

Personally I am so sick of North American market instability, I am aggressively seeking international investment opportunities. If any readers have any suggestions, please leave your suggestion as a comment to this article.

Cheers,

O'Leary Global Equity Income Fund (OGE.UN:TSX) now on Agoracom.com

Just wanted to let the readers know that I have been appointed by Agoracom as the Hub Leader for the O'Leary Global Equity Income Fund's Investor Hub.

If your not familiar with Agoracom, it is the Internet's largest online Investor Relations company.

"AGORACOM is the Web 2.0 online marketplace and forum for citizens of the small-cap investment community. Public companies, shareholders and prospective shareholders amalgamate for the purposes of communicating in a monitored and secure environment free of bashing, hyping, spam and profanity that have plagued other small-cap communities for far too long." - Agoracom.com

And as of last week, they just began advertising on BNN, Bloomberg, and CNBC. This e-Firm is going to explode IMO and has a massive, informed community where the business concerns of many client and non-client publicly traded company's are discussed.

I will be moderating and posting information with regard to OGE.UN and this investor hub will be an investors and prospective investors best bet for information on the income trust.

Also, the O'Leary Global Infrastructure Fund will be traded soon. Unfortunately, no word on a symbol yet, but as soon as I know what it is, you do. I am very excited for this fund.

http://www.agoracom.com/
http://agoracom.com/ir/Gencap
http://www.gencapfunds.com/

Hit the Commodity ETF's and ETN's, and Hit Them Hard

This past last 6 months have created havoc in the United States and the rest of the world. The mortgage crisis followed by the financial market meltdown has created a situation of the largest Government bail-out in the history of the western world. The $700 billion Fed print-out *cough cough*, forgive me; Bail-out has produced a ton of cheap money sloshing around the worlds markets. What does this mean? Well for one, Hyper-Inflation.

Now the equities markets won't be very effected by the eroded buying power of the all-mighty greenback, but you will definitely see hyper-inflation in the commodities. And of course, the specifics are Gold, Silver and Oil. But don't kid yourself, the other commodities will be very lucrative in inflated gains.

Now, myself, I don't trade the actual commodities. My interests lie more in the ETF's and ETN's which follow the commodities. Specifically, the option call's of these securities. As always, do your homework, find the right strikes and profit.

(NYSE: GLD, SLV, DGP AMEX:USO)

And as always, the producer's of the commodities aren't a bad bet either, but be prepared to go the long distance.

Happy Trading.

NEXEN - Premium Synthetic Crude to Begin Production Any Day

Nexen Inc. (NYSE:NXY, TSX:NXY), a large energy producer based in Canada which has a massive stake in the Long Lake Project in Fort McMurray looks to complete it's new Upgrader asset. As of September 2, 2008; a press release from Nexen revealed that the Long Lake project was moving along on schedule and that 90% of the upgrader to their extraction and processing asset's were commissioned and eluded that the upgrades would be complete by the end of the month.

We are coming to the end of the month and I look everyday for news of completion. This Upgrader will allow Nexen to begin it's first production of it's Premium Synthetic Crude product. All resources and materials for production are all procured and allocated to begin production the the new energy product and is believed by analysts to raise the price of Nexen in the $30-$35 range.

The best bet is to look at the October and November Calls to best position one's portfolio to benefit from this growth.

Further Rally In AIG and it's Calls

News released Sunday of AIG's major share holders efforts to raise capital and purchase the Government's 80% stake in the financial firm is already affecting AIG's bids and asks this Sunday evening. As of 10:36 MT, the stock is poised for a gap of 20 cents for tomorrow's market open and I anticipate it to raise further as we approach the market open for Monday.

My interpretation of this action is that obviously the shareholders don't want the shares to be diluted by that 80% stake but it also shows me that the company is worth not handing it over to the US Government and to keep the power with the shareholders.

The Calls of AIG between the 5-7 strikes look to be of particular open interest and look to perform very well tomorrow.

Keep an eye out for AIG.

Government Bails Out AIG With $85 Billion Loan

Another informational video of AIG's take over. Just an additional weekend video for your viewing pleasure. Look for a new post Monday. Have a great weekend.

Treasury Rescue Plan: Bad Medicine

An interesting video of the recent activities of the U.S Government whith regard to the financial meltdown. Enjoy!

AIG and SPY Call's

During the trading day today, I was able to find a nice little opportunity which was an obvious no brainer on AIG (NYSE:AIG). The October 5 Calls were especially active on AIG, opening today at $0.50 gapping up from the $0.24 PDC and reaching a high of $1.08 and ending the trading day at $0.91 with massive volitility throughout the day. There were plenty of profit-taking opportunities for traders.

As well, Calls on SPY performed extremely well for investors with Friday's rally.

Overall, plenty of gains for investors to earn back from the financial crash earlier this week.

Oil and Commodities Tumble.....

*Sorry for the late post folks. I have unfortunately been sick extending my labor day long-weekend further than anticipated. I do try to at least post once daily but I let the ball slip.

On Tuesday as most of you are well aware of, Oil prices fell to a new five-month low, allowing the $100/barrel.

The demand side of oil fell as supply fears were extinguished as Gustav only affected the perimeter of the Gulf's 'Oil Patch' and drove the prices of oil further down. Although terrible for investors, I am thankful that a Katrina level incident did not repeat itself and cause as much hardship for the people of the American south.

As of now, Oil production in the Gulf is still shutdown as part of the preparations to minimize Gustav's damage to the energy facilities if the hurricane were to occur as forecasted.

Oil and commodities including Gold fell on additional news of global economic output falling. Economic slowdown in the America's and Europe will hinder demand for oil and has caused investors to pull out of the commodity and energy sectors around the globe.

In addition to the above, the greenback gained strength versus the euro and other western currencies driving demand for Commodities measures in USD down.

Overall, as energy traders on Tuesday drove down prices via mass exodus of the markets, it is apparent that they are going to keep their eyes on the following tropical storms to come.

Gustav

With the disposition of a potential hurricane 'Gustav' the markets are in a flurry of market activity, but it is more of uncertainty. Wall street is glued to the weather channel or accuview weather.

Analysts believe that the energy, insurance and real estate will be negatively affected. Just based on the past history of Katrina's affect of the market, we can draw the conclusion that it is more likely that the market will respond similarly to the market's during Katrina.

Specifically, looking at the companies who will be most affected; Shell, Haliburton, AllState, and Waste Management.

Beginning with Shell (NYSE: RDS.A), they have already shut down some offshore facilities and moving the mobile facilities as much out of the way as possible. With more than 25% of the United States Domestic Oil and Gas Production in the area forcasted to be affected, it's a no brainer that the respective energy producers will be negatively affected.

With potential destruction imminent, and Bloomberg just claiming that Hurricane Gustav's destructive power could be comparable to Katrina, its safe to surmise that the insurance sector will take a hit. Historicaly, the AllState Corporation's stock price fell by five points due to the aftermath of Katrina and should anticipate a similar drop. It would be wise to look at State Farm insurance as well.

The largest name in the Energy service industry is hands-down Haliburton Corp. (NYSE:HAL). Once Gustav lays down the wrath to the energy platforms in the area, servicing and repairing the damaged energy facilities. This is just the type of bread and butter business Haliburton and it's share holder thrive on.

Finally, Waste Management as it did will with Katrina will be heavily contracted to clean up the mess which Gustav will undoubtedly leave behind.

So In a nutshell, just to save on time, looking at October Calls of HAL and WMI seem to be a prudent direction to take, and October Puts on RDS.A and ALL.

Remember that the above suggestions are to just nudge you in the right direction to research and are purely my opinion. Please consult your Investment Advisor before making any investment decisions. Investing involves risk.

Contrary to the news and speculation of Gustav, Oil is currently down on a higher US dollar driven by higher than expected GDP results.

Water, Water Everywhere.... International Importers Take a Drink?

I wanted to wirte this post regarding a Quebec think tank view on exporting Canadian fresh water to the rest of the world (meaning the USA), and I just wish to clarify the under-valuation of Water as a commodity. Perhaps you have heard of water being "the new oil" and the speculation of being priced higher in 10 years in equivalent barrel volumes of oil. Perhaps this may be or perhaps not. Let's look at this from a different perspective, rather not as a commodity speculator, but as a consumer. In Canada, a liter of regular gas averages around $1.20; where as a 500 ml bottle of water at individual retail prices can find you anywhere between $1-3 depending on brand and purchase location. That is a massive difference between the two commodities and there is one major and obvious difference between them; a human cannot physically live without water.

Retailing the precious, life-giving commodity at those prices is a tremendous opportunity and the price can only go up from here.

Another point is with recent developments by the Japanese automakers regarding hydrogen fuel-cell such as Honda's FCX Clarity, the new use for water will drive prices up further.

I fear i am rambling on now, so I will leave you with my favorite water ETF's:

- PowerShares Water Resources (ETF) (Public, AMEX:PHO)

- Claymore S&P Global Water Index ETF (Public, AMEX:CGW)