Spherix Inc (NASDAQ:SPEX)

CAPS Rating: 2 out of 5

The Company operates via two principal segments, BioSpherix and InfoSpherix. BioSpherix develops proprietary products for commercial applications. InfoSpherix provides contact center information and reservation services for government and industry.

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Member Avatar jtseat (< 20) Submitted: 6/16/2014 7:48:27 PM : Outperform Start Price: $1.84 SPEX Score: -54.30

With so many lawsuits filed against so many huge companies, plus a small cap means that if spherix were to win even one of them it could double the market cap as w
ell as the share price.If they were to win all of them, it could be epic Gains.

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Member Avatar pavlos1971 (99.52) Submitted: 11/23/2013 9:56:43 AM : Outperform Start Price: $7.96 SPEX Score: -99.44

ZZlangerhans' argument was good enough. In addition, it's a low float with no immediate existential risk, in a bull market, in the week of Thanksgiving. I'll mark it as a pump candidate.

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Member Avatar zzlangerhans (99.78) Submitted: 11/22/2013 4:47:21 PM : Outperform Start Price: $8.02 SPEX Score: -99.77

Having failed in its multiyear attempts to develop D-tagatose as a therapy for diabetes, Spherix seems to have allowed itself to be used as a shell for a reverse merger with patent troll extraordinaire Anthony Hayes and his company North South holdings. Bulls point to Hayes' self-promoted track record of successful patent enforcement activity, although I don't have the time to attempt an independent confirmation of the figures provided. Until Spherix provides some evidence of revenues based on patent litigation, the low-float stock will move according to spurious stimuli such as Seeking Alpha articles.

A more objective perspective is provided by this Bloomberg article: http://www.bloomberg.com/news/2013-11-20/publicly-traded-patent-collectors-plaguing-google-apple.html . One interesting fact the article points out is that Spherix bought a large chunk of their patents from the Rockstar consortium, created by Microsoft and Apple.But Apple is portrayed in the article as one of the victims of patent trolls, so why are they selling patents to their potential future victimizers? If the patents had any value, wouldn't they want to keep control of them?

Two possible explanations present themselves. Either Rockstar scrubbed the patent portfolio prior to the Spherix sale to remove any patents of potential value, or they're engaging in a high risk proxy war with other tech titans by releasing control of patents that are damaging to Google or Facebook, but not to them. That second possibility seems unlikely, although this Seeking Alpha author http://seekingalpha.com/article/1799712-why-are-heavyweights-like-apple-and-microsoft-partnered-with-spherix-incorporated seems to think that the patent sale makes Spherix partners with Microsoft and Apple since Rockstar accepted payment in Spherix equity.

I'm highly skeptical that Spherix has a future. I think Hayes is much more interested in sucking money out of gullible investors than he is about prying it loose from tech titans. Nevertheless, I think in the short-term Spherix will continue to be volatile as stock promoters, connceted to Hayes or otherwise, continue to periodically generate unrealistic expectations for the company.

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Member Avatar facwinjeff42 (< 20) Submitted: 10/11/2010 12:01:50 PM : Outperform Start Price: $10.80 SPEX Score: -163.62

have a good feeling about zzlangerhans' gamble here... hoping for a short-term bump back to the mid-$1s

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