Tuesday, August 19, 2014

8/19/2014 Market Wrap

News:
ACTG announced they signed an agreement with RPX
for their Innovative Display subsidiary.
CRDS announced that Markman Advisors was retained
for the next phase of the non-'972 patent monetization.
NTIP announced their '930 patent was issued a reexam
certificate.
Filings:
Nothing to Report
Trading Commentary:
Ticker $CHG %CHG  Volume      Closing 
Price
ACTG  $        0.21 1.24%         435,900  $17.11
BCYP.OB  $ (0.0040) -2.74%         375,600  $0.1420
CLGL  unch  unch  N/A   $0.0150
COPY.OB  $   0.0049 1.96%         137,900  $0.255
CRDS  unch  unch         202,100  $2.88
DSS     $   0.0100 0.83%            82,000  $1.21
EDIG.OB  unch  unch            41,200  $0.0380
ENIP  $ (0.0006) -1.48%         184,500  $0.0399
INVT (EONC)  $      (0.04) -2.25%            22,300  $1.74
FNJN.OB  $        0.31 7.97%              1,200  $4.20
IDCC  $        0.01 0.02%         258,400  $43.20
MARA.OB  $        0.10 0.90%            57,700  $11.21
MGT  $        0.08 9.87%            44,700  $0.87
NTIP  unch  unch            51,900  $2.10
OTIV  $      (0.03) -1.24%         103,000  $2.39
PCO   $      (0.02) -1.21%            72,700  $1.63
PPRO  $      (0.15) -5.56%              6,100  $2.55
PRKR  unch  unch         488,700  $1.14
PTNT  unch  unch              2,000  $3.05
RMBS  $      (0.03) -0.25%         685,400  $11.86
SITO.OB  $   0.0100 270.00%            14,400  $0.38
SPEX   $        0.03 2.01%         546,800  $1.52
STRP  $        0.03 0.34%            50,000  $8.98
TIVO  unch  unch         692,700  $13.71
TSRA  $        0.37 1.27%         623,700  $29.45
UPIP  $      (0.02) -0.99%         423,900  $2.00
VHC   $      (0.58) -3.70%         533,900  $15.10
VRNG  $        0.22 18.64%   22,128,800  $1.40
WDDD.OB  $   0.0010 0.62%            97,100  $0.1620
WILN   $        0.06 1.66%            87,000  $3.67

Vringo CAFC and the Future

VRNG CAFC

As many know Vringo (VRNG) had their case reversed on appeal at the Federal Circuit.  Shares spiked down 70% in a flash, leaving un-hedged investors in a very bad position.  The company has very few options in regards to the search portfolio.  We should see an En Banc petition for a rehearing in front of the full Federal Circuit and a writ to the Supreme Court.  My opinion it is highly unlikely for either to get granted, especially with the case being a non-precedential opinion.  I suggest to consult an expert patent attorney, which I highly recommend the team at Markman Advisors for litigation specifics, especially ahead of binary decisions.  Enough has already been published on the specifics of the reversal and I have nothing of importance to add on that front.

Even with the loss the team at Vringo executed very well in their first attempt at patent monetization.  The team was able to merge a patent asset into a listed entity, execute very well through the Markman, SJ, at trial, and the USPTO.  They were able to provide investors with a very liquid vehicle and later an options market with the ability to hedge the risks.  While getting reversed on appeal was ultimately very disappointing, management put investors in the best position possible, where many thought they would fall on their face well before ever getting to the CAFC (including me).  As an investor that is all I can really ask for.  I don't believe management could have done anything better to change the result.  The company has a fairly large following and investors should have understood all of the risks involved as an immense amount of research and commentary was published.

I expect the future to revolve around the Infrastructure portfolio that was acquired from Nokia in 2012, which the team has already seen very solid preliminary results.  They have done very well with their efforts against ZTE globally and have filed/settled cases with ADT/Tyco with non-core patent assets.  About 4.5% of the initial outlay has already been recovered.  I will be publishing more information in the near future.  My opinion is VRNG management / David Cohen are on the bleeding edge of global monetization by a NPE.

The company also acquired a patent of importance from Microsoft and a handful of others from Alcatel.  I expect to see future actions filed along with a strong likelihood of additional acquisitions.  My belief is an IP company should focus on a diversified portfolio of patent assets and a strong pipeline of incoming assets in order to mitigate risk for investors and to provide a steady revenue stream to offset cash burn from litigating the bigger cases.

The Future

This has been well in the works for nearly a year, but I will be moving the IPHawk blog into a paid subscription service.  There will be a plethora of coverage and analysis on IP investments.  The space is way bigger than one man can cover so I will be partnering with two very trusted names that many have likely seen before.  They have put out expertly researched publications that continue to be guidebooks for IP investments.  The goal is not to predict binary legal outcomes, but to provide investors with data, opinions, and analysis to supplement their own research in order for individuals to make more informed decisions.  Patent monetization tends to be a multi-year process with many developments and events along the way that are largely under-reported.  We intend to provide that coverage.  If anyone has interest please email me at iphawk@outlook.com .

Monday, August 18, 2014

8/18/2014 Market Wrap

News:
OTIV announced they were awarded multiple local
government tenders in South Africa valued at $500,000.
Filings:
Nothing to Report
Trading Commentary:
The IP sector rallied with the overall market closing up
.91%.  Many of the names beaten up on Friday were able
to bounce.
DSS was able to rally closing up 3.4% after Friday's move
down.
SPEX traded down 8.5% on below average volume.  The
company held a conference call this morning, which I 
thought went rather well.  Investors need to realize that
IP companies are very limited in what they can say and
disclose publicly in order to not violate NDAs or weaken
position in court.
TSRA continues to move higher, making a new 52 week
high and closing just under it at $29.08.
VRNG closed up 34% in a combination of a bounce after
last week's CAFC reversal and 2 insiders disclosed
purchases.
Ticker $CHG %CHG  Volume      Closing 
Price
ACTG  $      (0.21) -1.23%         550,700  $16.90
BCYP.OB  $   0.0010 0.69%         428,900  $0.1460
CLGL  unch  unch  N/A   $0.0150
COPY.OB  unch  unch            99,400  $0.250
CRDS  $        0.03 1.23%            41,600  $2.88
DSS     $   0.0400 3.45%         255,400  $1.20
EDIG.OB  unch  unch            25,000  $0.0380
ENIP  $ (0.0010) -2.41%         342,700  $0.0405
INVT (EONC)  $        0.07 4.09%            29,500  $1.78
FNJN.OB  $      (0.33) -7.82%              7,100  $3.89
IDCC  $        0.69 1.62%         311,200  $43.19
MARA.OB  $        0.10 0.91%            14,000  $11.11
MGT  $      (0.05) -5.95%            77,000  $0.79
NTIP  unch  unch                  400  $2.10
OTIV  $        0.02 0.83%            48,600  $2.42
PCO   $        0.05 3.13%         110,700  $1.65
PPRO  unch  unch              7,400  $2.70
PRKR  unch  unch         314,500  $1.14
PTNT  $      (0.06) -1.77%              3,500  $3.05
RMBS  $        0.06 0.51%         279,100  $11.89
SITO.OB  $ (0.0150) -3.90%              8,600  $0.37
SPEX   $      (0.14) -8.59%      1,686,200  $1.49
STRP  $        0.07 0.79%            61,900  $8.95
TIVO  $        0.29 2.16%         635,800  $13.71
TSRA  $        0.36 1.25%         928,400  $29.08
UPIP  $      (0.08) -3.81%         483,500  $2.02
VHC   $        0.39 2.55%         573,000  $15.68
VRNG  $        0.30 33.82%   21,720,800  $1.18
WDDD.OB  $ (0.0090) -5.29%         596,900  $0.1610
WILN   $        0.05 1.40%         103,700  $3.61

Thursday, August 14, 2014

8/14/2014 Market Wrap

News:
IDCC lost its patent case at the ITC against MSFT and Nokia.
Shares are down 7% in the AH session in response.
MARA reported Q2 2014 results
MGT reported Q2 2014 results
OTIV reported Q2 2014 results
UPIP reported Q2 2014 Results
WILN announced a licensing agreement renewal with
Aluratek. 
WILN also announced an orthopedic portfolio.
Filings:
MARA Q2 2014 10Q
MGT  Q2 2014 10Q
OTIV Q2 2014 10Q
Trading Commentary:
The sector traded strong all day with TSRA accounting for
almost all of the days gains.
IDCC closed flat for the day.  An ITC order was published
AH, which the ITC found no violation.  Shares are trading
down sharply in the after hours.
MGT continues to rally after recent lows closing up
another 6.25% on light volume.
PRKR was able to rally in the afternoon after making a new
52 week low of $1.08 in the morning.  Shares closed up
4.5%.
TSRA again made a new 52 week high of $28.78 on strong
volume and closed just under the high at $28.67. 
Ticker $CHG %CHG  Volume      Closing 
Price
ACTG  $      (0.23) -1.33%         178,400  $17.09
BCYP.OB  $   0.0130 963.00%         323,200  $0.1480
CLGL  unch  unch  N/A   $0.0135
COPY.OB  $ (0.0050) -1.96%         196,100  $0.250
CRDS  $      (0.03) -1.04%           16,600  $2.85
DSS     $ (0.0600) -4.62%         187,300  $1.24
EDIG.OB  $ (0.0029) -7.27%         125,600  $0.0370
ENIP  $ (0.0029) -7.67%         147,900  $0.0349
INVT (EONC)  $      (0.07) -3.78%           26,000  $1.78
FNJN.OB  unch  unch           10,500  $4.10
IDCC  $        0.08 0.19%         223,600  $42.88
MARA.OB  unch  unch           22,100  $11.83
MGT  $        0.05 6.24%           27,300  $0.83
NTIP  unch  unch           29,500  $2.10
OTIV  $        0.01 0.43%         557,300  $2.32
PCO   unch  unch           34,500  $1.64
PPRO  $      (0.08) -2.91%             7,200  $2.67
PRKR  $        0.05 4.50%         702,300  $1.16
PTNT  unch  unch  N/A   $3.11
RMBS  $      (0.11) -0.92%         266,000  $11.79
SITO.OB  unch  unch           35,100  $0.38
SPEX   unch  unch     1,181,400  $1.71
STRP  $        0.11 1.23%           66,900  $9.08
TIVO  $        0.04 0.30%         495,300  $13.56
TSRA  $        0.79 2.83%     1,252,100  $28.67
UPIP  $      (0.01) -0.49%         364,500  $2.04
VHC   $      (0.16) -1.05%         303,500  $15.13
VRNG  unch  unch         786,300  $3.15
WDDD.OB  $   0.0038 2.05%           14,100  $0.1888
WILN   $        0.01 0.28%           66,300  $3.61