I think that based on the revenue growth and eps this stock should be trading for cash plus some premium based on the revenues from the patient portfolios that can be licensed now.
Revenue numbers are telling us that the vast majority of the portfolios they own can't be licensed. Also, the timing of the purchase of the Adaptix portfolios was at the height of the smartphone IP battles so ACTG probably overpaid for it.
Now, assuming they stop losing money, this stock should be trading at $7-8. If they will continue current performance, this company will not be around within the next couple of years.
Considering last quarter's numbers, price of $14 is still astronomical.
Treska sold 6000 shares, Harris sold 13333, Haynes sold 6000.
Harris made 1.5mm last year, Haynes 908k, Treska 635k.
They all sold their shares into a 52 week low.
I wonder how many shares Matt Vella is going to sell then he is allowed.
Smart guys! As my old boss used to say, whenever someone is offering you a money or something else, you take the money and run!
Sentiment: Strong Sell
There should be no credit because they mislead the investors. Also, look at the 2012 and 2011 income statements, during these years this stock looked cheap at 30, but now it looks expensive at 15.
There is another very alarming trend for this company: smart money that include Soros, DeShaw and Highbridge took all their chips off the table.
Acacia had a $100 Million shares buy back program last year, yet 48.7 Million out of 49.93 are still float which means they didn't buy anything last year.
Who knows what their understanding is and what can they settle for. Revenues are falling, they are loosing money and no one is rushing to purchase this company at current price levels. It's difficult to find another listed company with scarier fundamentals.
Any why would that be the case? Unless Acacia can show that they can make money from the portfolios they have, the price of the stock should be converging to cash, which is, according to the latest filings, 5.71 per share. Currently, their portfolios are actually costing them 27 cents per share.
Great question! And the answers is that I don't know and the Acacia doesn't know and the market doesn't know and the numbers Acacia report no one believes. The only thing that everyone knows is that they have 5.71 in cash per share, so that's the base line when it comes to assets.
It's ok. It is not unusual to see these large sell off when the company performs so poorly.
If you look at the fundamentals, this stock is ridiculously overpriced, so don't be surprised to see more lows.
This stock will not be going higher without a positive catalyst.
Chart looks pretty bad and fundamentals are even worse. Besides the fact that it has no debt and it pays a dividend, there is nothing positive out there.
Obviously, You won't find any buyers on that list, but the number of shares sold in October was not as high as it was during the previous months. Only Matt Vella thought that his shares were expensive.
May be this stock is bottoming indeed.
He made a typical rookie mistake. He bought 7k into the end of a suckers rally. Oh well, now, it's a long term investment for him....
Ok, so the bottom line is that the fair value of this stock can't be approximated hence one has to rely on cash and book value to estimate the price.
Anyway, today's downgrade by Zacks to strong sell when the stock is at 52 week low usually is an indication of the bottom.