Acacia Research- Acacia Technologies (NASDAQ:ACTG)

CAPS Rating: 2 out of 5

The Company is comprised of two operating groups: The Acacia Technologies group develops, acquires, and licenses patented technologies. The CombiMatrix group is developing a platform technology to rapidly produce tailored-content arrays.

Recs

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Player Avatar Zefur (< 20) Submitted: 2/1/2007 11:27:47 AM : Outperform Start Price: $10.15 ACTG Score: +238.63

ACTG sells well-below the fair value of probable cash flows from its existing IP (intellectual property) portfolios. The company currently has 5-6 home-run type patent portfolios, any of which could generate more in license revenue than it's entire revenue base of last year. Even better, it is acquiring additional patent portfolios, in most cases, with no capital commitment. It is a difficult company to analyze and value for professional investors based on traditional methods, limiting demand for institutional ownership, which has helped keep the stock at bargain levels. For an investor that can hold on for a couple of years to see ACTG's patent portfolio turn into licesensing revenue, it would be hard to find a better stock for risk vs reward investment.

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