Acacias Needn’t be Thorny Shrubs in the Sides of Investors with Gains Like Today’s (ACTG)

There is no getting past the fact that Acacia Research (NASDAQ: ACTG) is trading near its 52-week low. There is equally no sense in suggesting that its midweek gains should be ignored, scoffed at or overlooked if looking at potential growth stocks with a market capitalization of over a billion dollars. Acacia has often been, fairly or unfairly, deemed a patent “troll”. That being said, it remains one of the more prominent developers, license providers and enforcers of patented technologies in the United States.

The full extent of patent portfolios held by any company who works in this field will always remain something of a mystery. Short of necessary disclosures and filings with the SEC, patent enforcers generally go out of their way to remain in the shadows awaiting potential patent violations. Acacia Research is certainly no different.

Acacia Research gained nearly $2.00 today to return itself within pennies of where it opened last Friday at $26.02. Friday’s trading left the stock at $25.13 when the bell rang. This drop was only the beginning. Monday saw the stock open markedly down when trading began at $24.40 before ratcheting down to $23.14 at the end of trading. Tuesday saw an even more dismal beginning to the day as the opening bidding began at $22.86 and was immediately met with a sell-off that saw Acacia drop to below $22.00, a mark not seen in weeks.

Thankfully, Tuesday afternoon saw an end to Acacia’s bad fortune and the stock rallied to a gain on the day of over 8%, closing at $24.01. Wednesday brought little to speak of with the exception of heavy volume. Today, however, saw Acacia’s ascent continue. The day marked the end of a turbulent ride through murky suggestions by analysts and insiders alike when it recovered all of its losses since last week.

The reason? Boston Scientific. On October 2, Acacia Research announced the acquisition of an additional seven patent portfolios related to “stent grafts, vascular grafts, bypass grafts, graft retrieval technology, vena cava filter technology, and filter retrieval technology from a leading global medical device company.”

Boston Scientific was, of course, never mentioned. “We’re seeing the medical sector as a major area of growth for Acacia,” noted Ryan, referencing several revenue-producing licenses from the earlier portfolios that were announced toward the end of the third quarter. “We’re getting licensing deals done very quickly,” explained Ryan. “We announced licensing deals with Boston Scientific, and with [W.L.] Gore and with Varian [Medical Systems].”

Boston Scientific is a leader in a number of medical fields worldwide and its growing link to Acacia Research is likely responsible for Acacia’s gain of over 8% in today’s trading.

Acacia also announced today that it would be releasing third quarter results upon the market close a week from today. That will be followed by a conference call a half hour after the release of these numbers.

 

 

 

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Published by Brendan Byrne

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. You may contact Brendan via his email (brendanbyrne@wallstreetpr.com) or his Google+ page (https://plus.google.com/u/0/116608759701551457422).

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