WI- LAN INC. ( WIN/ TSX)

The position: Recently added to long-term holding

Why do you like it? Wi-Lan shares came under pressure after the patent-licensing company lost a trial against Apple Inc. Takacsy expects the company to vigorously appeal the verdict, but the market will be focused on its strategic review.

“At the current share price, we see very limited downside and 50% upside,” the manager said, adding he expects the company will be sold in the next six months. “It’s worth at least $5 per share to a strategic partner and yields 4.7%, so you’re paid to wait.”

He noted Wi-LAN has $1.20 in cash per share and renewable licensing deals signed for the next four years, which means the company’s discounted net present value is at least $3.30 per share, Takacsy estimates.

Biggest risks: A deal fails to materialize; Apple appeal is disallowed.