Courtesy of SRP on Stockhouse:

FM Bulletin - December 20, 2011
Apple Wins Against HTC- Setback for Android: WIN for Wireless Patent Portfolio Companies

* Yesterday, Apple won a patent-infringement ruling that bans some HTC Corp. smartphones from the U.S. starting next year, bolstering efforts to prove that devices running Google Inc.’s Android operating system copy the iPhone.

* The U.S. International Trade Commission, in a review of a judge’s findings in July, said that HTC is violating one Apple patent related to data-detection technology and issued a limited import exclusion order that takes effect April 19, 2012. The implications are that HTC must completely remove the technology from all its phones.

* We view this announcement as a significant setback to the Android ecosystem. Because of the decision we believe players including the likes of Google will be on the prowl once again and thus valuations for patent portfolio companies will look attractive once again, (levels seen in Q3 FY2011) including both WIN and IDCC (InterDigital).

* WIN is currently trading at 6.4x Price/ FY2012 earnings estimate and less than 4.5x earnings, netting out the cash position.

* We reiterate our Strong Buy recommendation and $14.00 per share target price.