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Spherix Incorporated Message Board

  • investora2z investora2z Oct 9, 2013 6:47 AM Flag

    SA article

    In article on seekingalpha, Greg Miller has recommended to buy Spherix mainly based on the ability of the new CEO Hayes to successfully monetize the company's patents. Spherix has transformed itself into a patent assertion entity in a very short span of time, and Hayes has a track record of success in the IPR monetizing field. In case of Mango Capital, which was trading at a few cents, the shareholders got a substantial cash dividends (34 cents) based on the value of its patents mainly because of efforts of Hayes. He has experience in consulting, brokering patent sales between buyers and sellers, patent price arbitrage, financing third-party patent litigation and investing in other companies that own patents. Spherix has started an investor awareness campaign and is expected to clarify its new business to retail investors. In addition to the recent lawsuits against T-Mobile, Uniden and Vtech, more litigation and licensing announcements are likely. Importantly, the company was able to obtain $2 million funding recently. However, the risk lies in the fact that patents comprise a significant portion of the assets of Spherix. Greg estimates the value to be anywhere from $50 million to $350 million. The wide range indicates the difficulty in valuing these assets accurately. However, the hundreds of patents make the patents portfolio diverse, which increases the probability of monetizing. Hayes, who has experience in the industry must have evaluated his options based on the value of these patents before joining as CEO. Secondly, the capital structure is larger and the low float makes the volatility extremely high. The good part is that the patent monetizing sector is upbeat right now, and 2013 is expected to be even better than 2012. So the growth potential is high, but the risks are also large. More announcements from the company will further clarify its future strategy.

 
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