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I am individual investor with over 35 years investing experience. I have traded almost everything you can over that time. I prefer investing in microcaps as there can be above average rewards along with higher risk. The areas I follow very closely are: Technology, Intellectual Property, Precious... More
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  • Ladenburg Thalmann Raises Marathon Patent Price Target To $25

    New research report from LadenBurg raises price target to $25. This is a first move of what I expect of all the analysts raising their targets based on greatly increased revenue and earnings guidance. Given the huge 3rd quarter all the analysts were way off and even the new guidance from Ladenburg is ultra conservative going forward and gives a lot of room to continue to raise their price targets as the Marathon continues to execute. Given Marathon is really the only IP company with earnings and Acacia when they earned money had PEs well above 50X it is pretty easy to see how conservative Ladenburg is being.

    https://ladenburg.bluematrix.com/sellside/EmailDocViewer?encrypt=bb48c895-5fa3-482a-bbb3-f6b562bc80ac&mime=pdf&co=Ladenburg&id=AllUsers4LTS@ladenburg.com&source=mail

    One-Time Stock Dividend - Marathon Patent has declared a one-time stockMedTech v. Stryker - Following a favorable injunctive ruling, issued beforeKey Litigations - Although the company's basic strategy is to manage a highly

    achieve quick success from its acquired MedTech patent portfolio, underscores

    the company's ability to identify and acquire key intellectual property, in our view.

    We anticipate that the current patent portfolio will continue to produce increasing

    revenues in future periods and believe the current share price is not reflective of the

    expected predictability and longer-term growth. With the potential for a meaningful

    settlement from Stryker, we are now estimating revenues of $22 million in 2014 and

    $45 million in 2015, up from a previous estimate of $24 million for 2015. Additionally,

    we are estimating non-GAAP profitability of $1.24 per share. As such, we are revising

    our price target and believe that a more fair valuation should be based on a 20x

    multiple on our new per share earnings estimate for calendar 2015. 20x our $1.24

    per share estimate equates to a value of $24.80. As such, we are maintaining our

    Buy rating and increasing our price target to $25.00.

    Our Outlook - Marathon Patent's one-time stock dividend as well its ability to

    dividend that will effectively double the number of outstanding common shares.

    Holders of the company's common stock (as of the close of business December

    15, 2014) will be given an additional share for each share owned. The new

    share count will be approximately 18 million. We view the dividend, in light of

    strong 3Q performance, as an effective means to increase liquidity in the shares

    and potentially enable a transition of ownership composition toward longer-term

    institutional investors. The dividend payable date is December 22, 2014.

     

    Düsseldorf District Court in its patent infringement litigation in Germany against

    Stryker GMBH & Co, a subsidiary of Stryker Corp., (SYK, $94.60, Not Rated),

    MARA's MedTech GMBH subsidiary has been granted an injunction and is now

    enforcing that injunction involving all of Stryker's infringing products related to

    European patents EP 1938 765 B1 and EP 1 104 260 B2. The ruling provides

    MedTech with both injunctive relief and damages. The ruling also provides MARA

    with access to information on the distribution chain with respect to Stryker's medical

    devices for kyphoplasty related surgery in Germany. However, due to the bifurcated

    system in Germany, ongoing patent validity proceedings with respect to these

    patents are being tried in a different court although in the Düsseldorf District Court

    ruling Stryker's request for a stay of infringement proceedings was rejected. Based

    on the recent ruling we expect the validity of the patents could be upheld by other

    courts and we anticipate a settlement in the range of $10 to $30 million.

     

    Investment Highlights

    diversified patent portfolio and avoid high profile litigation, Marathon has acquired

    several patent groupings that have the potential for multi-seven figure dollar

    licensing awards. Included in this group are the Signal IP patents (automotive), the

    Clouding patents (networking) and the Dynamic Advances patents (natural language

    processing). We note that in addition to the company's recent success against

    Styrker, the MedTech GMBH patents are being litigated with other defendants in

    Germany and here in the U.S. Additionally, we note that MARA already has one

    settlement in place related to the MedTech patents with Johnson & Johnson (JNJ,

    $108.52, Not Rated) for roughly $450,000 per quarter.

    Disclosure: The author is long MARA.

    Dec 09 10:26 AM | Link | Comment!
  • Update: SilverSun Technologies Reports Record Second Quarter Revenues

    On August 14th SilverSun Technologies (OTCQB:SSNT) reported record second quarter revenue of $5.2M. Growth in Q2 actually accelerated to 36% compared to revenue growth of 21% in Q1. Both quarters were records. This marked the eleventh consecutive quarter of double digit growth and saw net income increase 72%. The company is on pace to exceed over $23M in revenue for the year and remains greatly undervalued selling at under a 1X revenues valuation. The original article, Supply Chain Management Coming of Age, discussed companies in the Supply Chain Management segment and highlighted SilverSun as an off the radar up and comer with financials well beyond its current market capitalization.

    Disclosure: The author is long SSNT.

    Tags: SSNT
    Aug 15 1:04 PM | Link | Comment!
  • Arianne Resources Furthers Advances Phosphate Deposit

    In a previous article back in January on Arianne Resources (DRRSF.pk), Arianne Resources On Big Fertilizer Stocks Radar, I discussed how Arianne was a potential takeover candidate by some of the biggest names in the fertilizer business. On Tuesday May 21st Arianne provided a further update on their development with a press release discussing additional pilot scale testing. This is one of the last pieces of the puzzle that locked into place with Arianne's announcing that their pilot scale metallurgical test confirmed a 39% P205 concentrate product with a 90% recovery rate. This news confirms that the Lac a Paul deposit can deliver one of the most sought-after phosphate concentrates worldwide. Arianne management has done a wonderful job of advancing this project and executing on the business plan. With the large, well attended annual fertilizer conference held in Chicago this past week, it is safe to presume that several of the majors have taken notice. In fact, the majors have allowed Arianne to do the "heavy lifting" by taking down obstacles, hurdles, and de-risking the project.

    (click to enlarge)

    Analysts predict that fertilizer companies will have a strong year of profitability this year. In particular, three very large phosphate producers, Mosaic (NYSE:MOS), PotashCorp (NYSE:POT) and CF Industries (NYSE:CF) are expected to have huge cash flows this year. Mosaic is expected to deliver $3 billion in cash flow this fiscal year that could add to their current cash on hand of $3.3 billion and will give them quite a war chest to acquire a truly excellent proven phosphate deposit safely situated in North America. Arianne could probably be had on the low side for $250 million but with a few bidders chasing this cherry of a project the most likely number would be $350 million, or more than a triple from the current market cap. CF Industries is forecast to have cash flows of $3.3 billion, which when added to their current $2.2 billion on hand is a not-to-shabby $5.5 billion ready to invest on behalf of shareholders.

    (click to enlarge)

    Obviously a company the size of Arianne is not going to develop a property that could cost upwards of a billion dollars but with the excellent potential return and the extremely short payback that could happen with a unique property such as this even a billion dollar investment by a major is very likely once the final risks have been addressed in the Bank Feasibility study due this summer. At that point I would expect Arianne to start soliciting bids on who they will be selling the property to for further development.

    Which of the majors will be the first to start the bidding? Will the eventual victorious acquirer be a North American producer or will they let this high grade, high quality project slip through their fingers and be owned by the Russians, Indians, or Chinese, all of whom have a strong desire to add to phosphate reserves, invest for the long haul, and escape the Moroccan monopoly in global supply? Although it is hard to say at the moment the economics of the project only seem to be improving with the latest report and the eventual owner of this development will more than likely step forward in the next several months.

    Disclosure: I am long OTCPK:DRRSF.

    Tags: DRRSF, Long Ideas
    May 27 10:23 PM | Link | Comment!
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