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Acacia Research Corporation Message Board

  • investora2z investora2z Sep 29, 2013 6:59 AM Flag

    Earnings next month

    The analyst opinion about Acacia is diverse. Many are optimistic about the future of the stock, and the consensus price target of around $28 reflects that. Zacks has upgraded it from underperform to neutral rating with a price target of $23.50. Analysts at Standpoint Research initiated coverage recently, and have put a buy rating with a PT of $33. Barclays Capital reduced the target from $28 to $23. JPMorgan Chase reduced the target from $40 to $34, but they have an overweight rating for the stock. There have been articles recommending to buy the stock mainly because of the potential of the business, and Acacia's approach & business model. The last two quarters have surely made the analysts a bit cautious, and it has now become crucial that the next few quarters are better than estimates. For starters, the earnings next month need to be better than estimates. The expectations are lower as the company was unable to meet the expectations from the last two earnings. In the third quarter last year the revenues were $34.94 million while the net loss was $6.62 million. However, Acacia has the potential to make a comeback and deliver great numbers. Over the long term, the growth is even more probable because of the growth in the market. IPR monetizing is big business, and companies are looking for alternative, less costly routes to achieve optimal value for their IPRs. Some companies like Spherix (SPEX) have even changed their business model to pursue patent monetizing strategies. Spherix has filed a few claims against big companies recently. The short interest in Acacia is around 8% (as on Sep 13), but the days required to cover are around 14.5. So any positive trigger can increase the demand for the stock suddenly. Hopefully the upcoming earnings will be that trigger.

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