Judge rejects bid to block AMR Corp. (AAMRQ), US Air (LCC) merger over price claims - Bloomberg
Judge rejects bid to block AMR Corporation (OTCBB: AAMRQ), US Air (NYSE: LCC) merger over price claims, according to Bloomberg headlines.
JPMorgan Reinstates Nokia (NOK) at Overweight; Large Patent Trove is Potential Gold Mine
JPMorgan reinstates Nokia Corp (NYSE: NOK) at Overweight and price target of €8 ($10.80).
Analyst Sandeep Deshpande noted the substantial potential Nokia has to monetize its patent portfolio. He thinks that if Nokia were able to take in 1 percent royalty per device, the firm's price target would easily move to €15.
Nokia has a broad patent portfolio (ex NSN) of ~10k patent families comprising ~30k patents. Only ~10% of the patents are externally licensed & Nokia has built a large trove of implementation patents which are linked to its essential patents.
There is two key ways Nokia can fully monetize its patents:
There might also be opportunity for Nokia in unraveling cross-licensing agreements. Say Nokia licensed certain IP to Apple and doesn't need that access any more, it would be able to sell that patent in whole.
- Getting better terms on new licensing deals given that Nokia has a stronger share of LTE patents versus 3G; and
- Broader licensing and enforcement of non-essential patents.
Nokia also recent won an injunction against handset maker HTC. Deshpande sees two points in this segment:
- Qualcomm's (Nasdaq: QCOM) LTE chips contain Nokia IP; and
- While Qualcomm is a licensee, the right does not pass through to its customers. HTC would need to obtain its own license with Nokia.
Qualcomm sells over 700 million
of these chips every year and once this case precedent has been set, Nokia can use it to claim royalties on that IP from many other infringing companies. The results of the key Samsung arbitration re additional payments will be known in early 2015 as well which should be a catalyst.
For an analyst ratings summary and ratings history on Nokia click here. For more ratings news on Nokia click here.
Shares of Nokia closed at $7.73 yesterday, with a 52 week range of $3.02 to $8.18.
Teva (TEVA) Sues Forest Labs (FRX) Over Alzheimer's Disease Drug
Teva Pharma (NYSE: TEVA) is said to have filed a lawsuit against Forest Labs (NYSE: FRX) over patent infringement, according to Bloomberg headlines.
The suit, filed in Delaware, is related to Forest's Alzheimer's disease drug Namenda XR
The patent in question is U.S. patent number 6,194,000, which was awarded to Teva in 2001.
Namenda was launched in the U.S. in June 2013.
UPDATE: Barnes & Noble, Inc. (BKS) Stock Drops on Reports of SEC Investigation
(Updated - December 6, 2013 11:34 AM EST)
Barnes & Noble, Inc. (NYSE: BKS) stock dropped mid-day on Friday. The fall followed DJ reports regarding an SEC probe disclosed in its 10Q filing yesterday. The probe relates to earnings restatement from July and allegations from former non-executive employees over allocation of expenses between Nook and retail units.
SEC Questioned Twitter's (TWTR) Growth Plans Ahead of IPO
Twitter (NYSE: TWTR) is ticking lower following news that the U.S. SEC questioned growth in the social media giant's user base.
In a filing made today, the SEC disclosed that it requested details from Twitter ahead of its IPO on how it planned to continue its claims of fast growth. Though Twitter's revenue more than doubled over the last year, the SEC was concerned about its user base growth slowing and whether users were less interested in viewing ads, which is Twitter's main revenue stream.
Twitter said in response that growth would depend on current users becoming more engaged with the service, given that the company expected additions of new users to be slow. The company uses algorithms which would target users with related interests to make them more effective and valuable, Twitter said.
Shares of Twitter are down 0.6 percent. The SEC letter is embedded below: