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Acacia Research Corporation, through its subsidiaries, acquires, develops, licenses, and enforces patented technologies in the United States. It assists patent owners with the prosecution and development of their patent portfolios, the protection of their patented inventions from unauthorized use, the generation of licensing revenue from users of their patented technologies, and the enforcement against unauthorized users of their patented technologies. The company owns or controls the rights to approximately 184 patent portfolios, which include the U.S. patents and foreign counterparts covering technologies used in various industries. Acacia Research Corporation was founded in 1992 and is based in Newport Beach, California.

Reasons to be bullish on Acacia Research:

It has a positive levered free cash flow of $40.58 million.

It has a stunning total 3 year return of 1,390%; the 5 year return though is only a 163%.

It has a very good quarterly revenue growth rate of 58%.

A strong 5 year sales growth of 37%.

Net income has increased from $-11 million in 2009 to $21 million in 2011.

EBITDA has surged from $- 1 million in 2009 to $40 million in 2011 cash flow per share has also experienced a massive increase from $-0.1 in 2009 to $1.24 in 2011.

Sales have almost tripled from $67 million in 2009 to $172 million in 2011.

It sports an incredibly strong current and quick ratio of 10.79 and 110.79 respectively.

Revenues came in at $21 million in the 4th quarter 2011 compared to $13.1 million in 2010; an increase of 60%.

In the 4th they acquired control of a record 15 patent portfolios.

Revenues for 2011 came in at a record $184.7 million as compared to $131.8 million in 2010 an increase of 38%.

A record 40 patent portfolios were acquired in fiscal 2011.

Growth rates year over year for the 1st and 2nd quarter are projected to come in at 220% and 140% respectively.

100K invested for nine years would have grown to a whopping $1.5 million.

Company : Acacia Res-Tech (NASDAQ:ACTG)

Levered Free Cash Flow = 40.58M

Basic Key ratios

Percentage Held by Insiders = 4.7

Market Cap ($mil) = 1639

Number of Institutional Sellers 12 Weeks = 8

Growth

Net Income ($mil) 12/2011 = 21

Net Income ($mil) 12/2010 = 34

Net Income ($mil) 12/2009 = -11

12mo Net Incm this Q/ 12mo Net Incm 4Q's ago = -41.34

Q Net Incm this Q/ same qtr yr ago = -33.32

EBITDA ($mil) 12/2011 = 40

EBITDA ($mil) 12/2010 = 46

EBITDA ($mil) 12/2009 = -1

Net Incm Rpt Qtr ($mil) = -7

Anl Net Incm this Yr/ Net Incm last Yr = -38.03

Cash Flow ($/sh) 12/2011 = 1.24

Cash Flow ($/sh) 12/2010 = 1.23

Cash Flow ($/sh) 12/2009 = -0.1

Sales ($mil) 12/2011 = 172

Sales ($mil) 12/2010 = 132

Sales ($mil) 12/2009 = 67

Performance

% Ch Price 52 Wks Rel to S&P 500 = 11.03

Std Dev Target Price Est = 6.93

Avg EPS Surprise Last 4 Qtr = 271.34

EPS % Change F2/F1 = 20.49

EPS Gr Q(1)/Q(-3) = -168.75

ROE 5 Yr Avg 09/2011 = -0.5

ROE 5 Yr Avg 06/2011 = -1.48

Return on Investment 09/2011 = 9.41

Return on Investment 06/2011 = 9.99

Debt/Tot Cap 5 Yr Avg 09/2011 = 0

Debt/Tot Cap 5 Yr Avg 06/2011 = 0

Current Ratio 09/2011 = 10.79

Current Ratio 06/2011 = 7.92

Curr Ratio 5 Yr Avg = 6.24

Quick Ratio = 10.79

Cash Ratio = 10.69

Interest Coverage = 2.35

Valuation

Book Value Qtr ($/sh) 09/2011 = 7.51

Book Value Qtr ($/sh) 06/2011 = 7.54

Anl EPS before NRI 12/2007 = -0.26

Anl EPS before NRI 12/2008 = -0.44

Anl EPS before NRI 12/2009 = -0.26

Anl EPS before NRI 12/2010 = 1.03

Anl EPS before NRI 12/2011 = 1.05

Price/Book = 5.09

Price/Cash Flow = 30.83

Price/Sales = 9.51

EV/EBITDA 12 Mo = 32.77

P/E/G F1 = N/A

Q1 Std Dev/ Consensus = 0.19

Std Dev Cons Current Qtr = 0.21

Median Est Next Qtr = 0.35

# Anlst in Cons Q3 = 5

Other interesting companies

For investors looking for other ideas in addition to the ACTG or if ACTG is not your cup of tea, we have provided key financial ratios on four additional companies that could prove to be interesting for some long term investors. An explanation for many of the key ratios used in this article was recently provided in this article Reasons To Be Bullish On Chevron Corp.

Company : Abb Ltd-Adr (NYSE:ABB)

Levered Free Cash Flow = 1.67B

Basic Key ratios

Market Cap ($mil) = 47198

3 Month % Chg Short Interest = n/a

Growth

Net Income ($mil) 12/2011 = 3168

Net Income ($mil) 12/2010 = 2561

Net Income ($mil) 12/2009 = 2901

12mo Net Incm this Q/ 12mo Net Incm 4Q's ago = 23.7

Q Net Incm this Q/ same qtr yr ago = 18.57

EBITDA ($mil) 12/2010 = 4615

EBITDA ($mil) 12/2009 = 4902

Net Incm Rpt Qtr ($mil) = 830

Anl Net Incm this Yr/ Net Incm last Yr = 23.7

Cash Flow ($/sh) 12/2011 = N/A

Cash Flow ($/sh) 12/2010 = 1.45

Cash Flow ($/sh) 12/2009 = 1.52

Sales ($mil) 12/2011 = 37990

Sales ($mil) 12/2010 = 31589

Sales ($mil) 12/2009 = 31795

Dividend history

Div Yield = 3.09

Div Yld 5 Yr Avg 09/2011 = 1.02

Annual Dividend 12/2011 = 0.63

Annual Dividend 12/2010 = 0

Forward Yield = 6.51

R-squared Div Growth 09/2011 = 0.92

Dividend sustainability

Payout Ratio 09/2011 = 0.44

Payout Ratio 06/2011 = 0.46

Payout Ratio 5 Yr Avg 09/2011 = 0.18

Payout Ratio 5 Yr Avg 06/2011 = 0.16

Change in Payout Ratio = 0.27

Performance

% Ch Price 52 Wks Rel to S&P 500 = -18.32

Std Dev Target Price Est = 3.45

Avg EPS Surprise Last 4 Qtr = -6.77

EPS % Change F2/F1 = 12.13

Next 3-5 Yr Est EPS Gr rate = 11.6

Std Dev 3-5 Yr Est EPS Gr rate = 7.64

EPS Gr Q(1)/Q(-3) = -117.65

5 Yr Hist EPS Gr 09/2011 = 2.45

ROE 5 Yr Avg 12/2011 = N/A

ROE 5 Yr Avg 09/2011 = 24.92

ROE 5 Yr Avg 06/2011 = 25.41

Return on Investment 09/2011 = 17.52

Return on Investment 06/2011 = 17.22

Debt/Tot Cap 5 Yr Avg 09/2011 = 15.65

Debt/Tot Cap 5 Yr Avg 06/2011 = 16.74

Current Ratio 06/2011 = 1.34

Curr Ratio 5 Yr Avg = 1.56

Quick Ratio = 1.22

Cash Ratio = 0.63

Interest Coverage 06/2011 = 15.2

Valuation

Book Value Qtr ($/sh) 06/2011 = 7.09

Anl EPS before NRI 12/2007 = 1.38

Anl EPS before NRI 12/2008 = 1.37

Anl EPS before NRI 12/2009 = 1.26

Anl EPS before NRI 12/2010 = 1.15

Anl EPS before NRI 12/2011 = 1.46

Price/ Book = 2.88

Price/ Cash Flow = 14.12

Price/ Sales = 1.24

EV/EBITDA 12 Mo = 9.53

P/E/G F1 = 1.13

Q1 Std Dev/ Consensus = 0.03

R-squared EPS Growth 09/2011 = 0.03

P/E F1/ LT EPS Gr = 1.13

Std Dev Cons Current Qtr = 0.01

Median Est Next Qtr = 0.38

# Anlst in Cons Q3 = 5

Company : Vector Grp Ltd (NYSE:VGR)

Levered Free Cash Flow = 58.19M

Basic Key ratios

Percentage Held by Insiders = 20

Market Cap ($mil) = 1443

Growth

Net Income ($mil) 12/2010 = 54

Net Income ($mil) 12/2009 = 25

12mo Net Incm this Q/ 12mo Net Incm 4Q's ago = 42.77

Q Net Incm this Q/ same qtr yr ago = 60.9

EBITDA ($mil) 12/2010 = 180

EBITDA ($mil) 12/2009 = 107

Net Incm Rpt Qtr ($mil) = 18

Anl Net Incm this Yr/ Net Incm last Yr = 118.07

Cash Flow ($/sh) 12/2010 = 0.88

Cash Flow ($/sh) 12/2009 = 0.8

Div 5yr Growth 12/2011 = 5.12

Sales ($mil) 12/2010 = 1063

Sales ($mil) 12/2009 = 801

Dividend history

Div Yield = 8.81

Div Yld 5 Yr Avg 12/2011 = 9.44

Div Yld 5 Yr Avg 09/2011 = 9.45

Annual Dividend 12/2011 = 1.56

Annual Dividend 12/2010 = 1.49

Forward Yield = 8.81

Div 5yr Growth 12/2011 = 5.12

R-squared Div Growth 12/2011 = 0.97

R-squared Div Growth 09/2011 = 0.96

Dividend sustainability

Payout Ratio 09/2011 = 2.44

Payout Ratio 06/2011 = 2.39

Payout Ratio 5 Yr Avg 12/2011 = 2.04

Payout Ratio 5 Yr Avg 09/2011 = 2.02

Payout Ratio 5 Yr Avg 06/2011 = 2.01

Change in Payout Ratio = 0.41

Performance

% Ch Price 52 Wks Rel to S&P 500 = 9.43

EPS Gr Q(1)/Q(-3) = 106.67

5 Yr Hist EPS Gr 09/2011 = -2.49

ROE 5 Yr Avg 12/2011 = 230.85

ROE 5 Yr Avg 09/2011 = 218.89

ROE 5 Yr Avg 06/2011 = 208.45

Return on Investment 09/2011 = 9.85

Return on Investment 06/2011 = 9.33

Debt/Tot Cap 5 Yr Avg 12/2011 = 78.23

Debt/Tot Cap 5 Yr Avg 09/2011 = 76.05

Debt/Tot Cap 5 Yr Avg 06/2011 = 75.38

Current Ratio 09/2011 = 1.82

Current Ratio 06/2011 = 1.84

Curr Ratio 5 Yr Avg = 2.23

Quick Ratio = 1.85

Cash Ratio = 1.84

Interest Coverage 09/2011 = 2.18

Interest Coverage 06/2011 = 2.95

Valuation

Book Value Qtr ($/sh) 09/2011 = -0.84

Book Value Qtr ($/sh) 06/2011 = -0.64

Anl EPS before NRI 12/2007 = 0.72

Anl EPS before NRI 12/2008 = 0.73

Anl EPS before NRI 12/2009 = 0.65

Anl EPS before NRI 12/2010 = 0.73

Price/ Cash Flow = 20.57

Price/ Sales = 1.29

EV/EBITDA 12 Mo = 8.85

R-squared EPS Growth 09/2011 = 0.39

Company : Telefonica S.A. (NYSE:TEF)

Levered Free Cash Flow = 8.19B

Basic Key ratios

Percentage Held by Insiders = 0.01

Market Cap ($mil) = 77451

Growth

Net Income ($mil) 12/2011 = 8617

Net Income ($mil) 12/2010 = 13375

Net Income ($mil) 12/2009 = 11072

12mo Net Incm this Q/ 12mo Net Incm 4Q's ago = -43.97

Q Net Incm this Q/ same qtr yr ago = 95.06

EBITDA ($mil) 12/2011 = 9036

EBITDA ($mil) 12/2010 = 18459

EBITDA ($mil) 12/2009 = 14490

Net Incm Rpt Qtr ($mil) = 3581

Anl Net Incm this Yr/ Net Incm last Yr = -35.57

Cash Flow ($/sh) 12/2011 = 1.59

Cash Flow ($/sh) 12/2010 = 2.23

Cash Flow ($/sh) 12/2009 = 2.39

Sales ($mil) 12/2011 = 84277

Sales ($mil) 12/2010 = 83649

Sales ($mil) 12/2009 = 79140

Dividend history

Div Yield = 10.09

Div Yld 5 Yr Avg 09/2011 = 4.54

Annual Dividend 12/2011 = 1.71

Annual Dividend 12/2010 = 1.39

Forward Yield = 10.09

R-squared Div Growth 09/2011 = 0.99

Dividend sustainability

Payout Ratio 09/2011 = 0.33

Payout Ratio 06/2011 = 0.4

Payout Ratio 5 Yr Avg 12/2011 = N/A

Payout Ratio 5 Yr Avg 09/2011 = 0.44

Payout Ratio 5 Yr Avg 06/2011 = 0.44

Change in Payout Ratio = -0.11

Performance

% Ch Price 52 Wks Rel to S&P 500 = -35.54

Std Dev Target Price Est = 0

EPS % Change F2/F1 = -7

EPS Gr Q(1)/Q(-3) = 1-115.46

5 Yr Hist EPS Gr 12/2011 = N/A

5 Yr Hist EPS Gr 09/2011 = 28.46

ROE 5 Yr Avg 09/2011 = 45.37

ROE 5 Yr Avg 06/2011 = 50.06

Return on Investment 09/2011 = 6.65

Return on Investment 06/2011 = 5

Debt/Tot Cap 5 Yr Avg 09/2011 = 65.37

Debt/Tot Cap 5 Yr Avg 06/2011 = 65.6

Current Ratio 12/2011 = N/A

Current Ratio 09/2011 = 0.64

Current Ratio 06/2011 = 0.62

Curr Ratio 5 Yr Avg = 0.72

Quick Ratio = 0.6

Cash Ratio = 0.26

Interest Coverage = 2.8

Valuation

Book Value Qtr ($/sh) 09/2011 = 8.36

Book Value Qtr ($/sh) 06/2011 = 7.19

Anl EPS before NRI 12/2007 = 0.62

Anl EPS before NRI 12/2008 = 2.09

Anl EPS before NRI 12/2009 = 2.39

Anl EPS before NRI 12/2010 = 6.77

Anl EPS before NRI 12/2011 = 4.83

Price/ Book = 2.03

Price/ Cash Flow = 10.69

Price/ Sales = 0.89

EV/EBITDA 12 Mo = 16.51

P/E/G F1 = N/A

R-squared EPS Growth 09/2011 = 0.72

Company : Heckmann Corp (HEK)

Levered Free Cash Flow = -108.16M

Basic Key ratios

Percentage Held by Insiders = 20.49

Market Cap ($mil) = 640

Growth

Net Income ($mil) 12/2010 = -15

Net Income ($mil) 12/2009 = -395

12mo Net Incm this Q/ 12mo Net Incm 4Q's ago = -10.02

Q Net Incm this Q/ same qtr yr ago = -1064.31

EBITDA ($mil) 12/2010 = -11

EBITDA ($mil) 12/2009 = -33

Net Incm Rpt Qtr ($mil) = -21

Anl Net Incm this Yr/ Net Incm last Yr = 96.29

Cash Flow ($/sh) 12/2010 = 0.06

Cash Flow ($/sh) 12/2009 = 3.09

Sales ($mil) 12/2010 = 46

Sales ($mil) 12/2009 = 36

Performance

% Ch Price 52 Wks Rel to S&P 500 = -14.54

Std Dev Target Price Est = 0.93

EPS % Change F2/F1 = 200

Next 3-5 Yr Est EPS Gr rate = 27.5

Std Dev 3-5 Yr Est EPS Gr rate = 3.54

5 Yr Hist EPS Gr 12/2011 = N/A

5 Yr Hist EPS Gr 09/2011 = N/A

ROE 5 Yr Avg 09/2011 = -4.22

ROE 5 Yr Avg 06/2011 = -4.22

Return on Investment 06/2011 = 1.6

Debt/Tot Cap 5 Yr Avg 09/2011 = 2.92

Debt/Tot Cap 5 Yr Avg 06/2011 = 2.92

Current Ratio 06/2011 = 1.48

Curr Ratio 5 Yr Avg = 43.31

Quick Ratio = 3.69

Cash Ratio = 3.33

Interest Coverage 06/2011 = 3.61

Valuation

Book Value Qtr ($/sh) 06/2011 = 2.53

Anl EPS before NRI 12/2008 = 0.09

Anl EPS before NRI 12/2009 = -0.25

Anl EPS before NRI 12/2010 = 0

Price/ Book = 2.03

Price/ Cash Flow = 84.52

Price/ Sales = 4.82

EV/EBITDA 12 Mo = -62.99

P/E/G F1 = 1.19

Q1 Std Dev/ Consensus = 0.15

P/E F1/ LT EPS Gr = 1.19

Std Dev Cons Current Qtr = 0.01

Median Est Next Qtr = 0.04

# Anlst in Cons Q3 = 4

Conclusion

Long term investors should wait for a strong pullback before committing new funds to this market.

EPS, EPS surprise, broker recommendations and price and consensus charts sourced from zacks.com. Earnings estimates and growth rate charts for sourced from dailyfinance.com. Free cash flow yield, income from cont operations, and revenue growth sourced from Ycharts.com. Financial highlights for 2012 and trailing 12 month revenue tables sourced from acaciaresearch.com.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: This list of stocks is meant to serve as a starting point. Please do not treat this as a buying list. It is imperative that you do your due diligence and then determine if any of the above plays meet with your risk tolerance levels. The Latin maxim caveat emptor applies-let the buyer beware.