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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (44386)	9/17/2011 3:05:07 AM
From: Spekulatius	Respond to of 78595

re UVIC - looks like this company should cease production and convert into a royalty trust instead. They made almost 3M$ in royalty income, which is not bad with a market cap of only 6M$. The main patent 5,754,270 was filed in 1996 so barring other patents, the royalty income stream could cease once the patent expires in 2016. Their market share is tiny relative to industry leaders like Ciba Vision (Novartis) or J&J - I don't think they can win on innovation and those industry leaders have access to better lens materials which is where most of the innovation is in contact lenses. They claim proprietary software for Lens design but lens design software is readily available (Zemax, Code V) - there is not much proprietary stuff there. I don't like large hedge fund ownership generally. Sort of a tough call as an investment, imo.