Garcea says he was surprised at the decision of the jury, whom he expects were swayed by LogMeIn’s argument to redefine “location facility” which its defense spent most of the proceedings doing, he says.
The analyst says he fully expects 01 Communique will appeal yesterday’s decision. He notes that the Eastern District of Virginia federal jury came to two conclusions yesterday; first, that 01 Communique’s ‘479 patent is indeed valid, and that LogMeIn does not infringe on said patent.
Garcea stresses that this verdict only impacts the LogMeIn case, and not 01 Communique’s actions against Citrix, or its recent out of court victory against Bomgar. But Garcea says he must remove the potential royalty payments from this case into his financial modeling. In a research update to clients this morning, Garcea maintained his STRONG BUY rating on 01 Communique, but lowered his one-year price target to $1.50, from his previous $3.
Shares of 01 Communique were hammered yesterday, investors betting the LogMeIn news would be bad sent the stock down 63% to $.36 before it was halted with minutes left before market close The stock lost another 43.1% to close at $.205 today.
In a short press release yesterday, 01 Communique said it would update shareholders after consulting with its lawyers.
At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.
Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
Following the company's first quarter results, ATB Capital analyst Martin Toner has maintained his "Sector Perform" rating on Thinkific Labs… [Read More]
Ahead of the company's quarterly results, Desjardins Securities analyst Benoit Poirier likes what he sees from Héroux-Devtek (Héroux-Devtek Stock Quote,… [Read More]