The stock has stabilized over the past few weeks. There have been some big volume days also indicating that the fall which started with bad results may have stopped for now. However, key levels have to be crossed before one can get more confident. Acacia continued to acquire more patents with the latest being rights to an automotive illumination patent portfolio from Rambus Inc. The acquisition indicates the focus of Acacia in the automotive sector. The CEO had recently stated that many major technology companies are selecting Acacia to increase opportunities for acquiring, licensing or monetizing the patents. The growth in IP monetizing business over the last few years has helped companies like Acacia and the growth in the market is only going to increase. Acacia may find several new clients which need help in identifying patents with potential and understanding the value of the technologies they possess. All this needs to translate into increased revenue and the stock would not like to have another bad earnings. The company is well placed as it is not totally dependent on outcome of lawsuits and has a steady stream of revenues. Some patent monetizing firms have been tweaking their business models to get a steady flow of cash through licensing revenue. MGT Capital investments (MGT) recently acquired FanTD LLC to mark an entry into the sports wagering / online gaming business. This acquisition will give the company revenues and reduce its dependency on the outcome of the patent infringement lawsuit filed by it against casino gaming companies. One of the defendants in the lawsuit, WMS Industries (WMS), is likely to approach MGT for settlement of the $4.5 billion lawsuit. For Acacia investors, growth is the main worry as competition is likely to increase as the market grows. Management needs to gear up for that and also look for other segments of the market.
Thanks for the post. Do you have any idea what caused the spike to $25 (24.99) this morning? And looking at the intraday chart, volume was very heavy during the spike---some institutional investor really was in a hurry to get a good-sized position today.