Patent Stock Review Updates Performance of 2013 Watch List.
Institutional Analyst Inc. (IA) updated the performance of publicly traded companies involved in patent monetization on its Patent Stock Review Watch List issued on February 6th, 2013. The top five performing companies gained an average of 19.8% from that date.
IA is an independent investment research firm founded in 1998, with the launch of the "Internet Stock Review" and now additionally provides coverage for companies in a number of distinct industries including; Biotech, Internet, Entertainment, Restaurants, Special Situations and Private Equity.
The Top 5 Performing Companies Were:
CopyTele, Inc. (COPY.OB) up 50%.
MGT Capital Investments, Inc. (NYSEMKT:MGT) up 45%.
America Superconductor Corporation (NASDAQ:AMSC) up 11%
Internet Patents Corporation (PTNT) down 3.6%
Document Security Systems (NYSEMKT:DSS) down 6%
"The Watch List, was created as a starting point for investors who are interested in companies involved in Patent Monetization via internally held patents, patent portfolios or through the acquisition of potentially valuable patents," stated Roland Rick Perry, editor who added, "The list is not a buy list, but rather our universe of companies, whose technology, management, patent portfolio and/or recent market performance we currently find compelling."
"There has been a tremendous amount of interest in the group, which is benefiting from an explosion in patent litigation, often involving seemingly unknown technology which has been previously patented, but unenforced and unmonetized," he added. "We will be adding a number of new names to the Watch List in the near future as new corporations are being formed via reverse mergers, which as a result currently fly under the radar (albeit temporarily) versus becoming public via a traditional IPO. We would also like to note our appreciation to our subscribers, who have pointed the existence of many of these newly formed corporations."
Recent News and Developments on Top Five Performers.
CopyTele, Inc. - $0.30. CopyTele (CTI Patents) has gained sudden recognition as it's new management team which has over 30 years of combined experience in Patent Monetization and Patent Assertion, and has generated in excess of $150 million patent licensing revenues -- began to implement its new goal of transforming CTI into a world class, publicly traded, patent assertion company." The company hit Wall Street's radar screens when it filed its second patent infringement lawsuit in May. It's first patent related announcement came in January when it filed suit against AU Optronics Corporation and E-Ink Holdings, makers of flat panel displays of products such as Amazon's Kindle and Barnes and Noble's Nook, for theft of display technologies. The second suit was filed against Microsoft with respect to encryption technology utilized by Microsoft's SKYPE video conferencing service. Although COPY has been the top performer in the group, they appear to be just getting started. With 2 recently announced patent acquisitions, the company now has 4 patent portfolios with what could be huge monetization potential. In all likelihood this means the potential for additional patent assertion lawsuit announcements, and significant potential upside in the stock as news spreads and management continues to perform.
The company will be presenting at the Second Annual Marcum LLP MicroCap Conference on Thursday, May 30, 2013 in New York City at the Grand Hyatt Hotel. Robert Berman, President and Chief Executive Officer, will update investors and answer questions.
MGT Capital Investments, Inc. - $5.29. MGT has enjoyed a surge in both volume and price to such an extent that they decided to issue a press release noting that "there have been no material undisclosed developments that would account for the recent increase in the price and volume of its common stock." The NYSE MKT notified the Company of unusual trading activity in its stock, and the Exchange requested the Company to respond by press release to the unusual activity. MGT Gaming, Inc., a majority owned subsidiary, owns U.S. Patent No. 7,892,088 relating to casino gaming systems. In November 2012, MGT Gaming filed a patent infringement suit against Caesars Entertainment Corporation, MGM Resorts International, Inc., WMS Gaming - a subsidiary of WMS Industries, Inc., Penn National Gaming, Inc., and Aruze Gaming America, Inc. Management will be presenting at the Marcum LLP MicroCap Conference.
America Superconductor Corporation. - $3.04. On April 4th, AMSC announced that it expects revenues will be between $19 million and $20 million for the fourth quarter of fiscal 2012. AMSC also expects to report cash, cash equivalents and restricted cash of between $49 million and $50 million as of March 31, 2013. The company's previous guidance for the fourth fiscal quarter was for revenue of at least $18 million and cash, cash equivalents and restricted cash of more than $48 million. AMSC has the exclusive rights to a fundamental high temperature superconductor (NYSE:HTS) patent in the U.S. The patent covers a broad range of second generation (2G) and similar HTS materials, wire and power-related applications. AMSC is seeking to recover more than $1.2 billion which stem from contractual breaches and AMSC's discovery of intellectual property theft.
Internet Patents Corporation. - $3.62. Internet Patents (formerly InsWeb) is by contrast, relatively silent with regards to patent related developments, issuing only four press release all earnings related, since June of 2012. They currently have patent infringement lawsuits in progress against six companies, two of which are alleged to infringe their Event Log patent, and four of which are alleged to infringe their Dynamic Tabs patent. In May the company noted that they had cash and cash equivalents and short-term investments of $33.0 million. They additionally have net operating loss (NOL) carry forwards of approximately $141.3 million and $63.2 million for federal income tax and state income tax purposes, respectively.
Document Security Systems. - $2.58. DSS has been very informative with regards to its progress in patent related issues. DSS previously announced plans to merge with Lexington Technology Group, Inc., (LTG) one of the top intellectual property management firm in the U.S. LTG invests business experience, legal expertise and capital to monetize pioneering inventions. LTG's goal is to identify and capitalize on opportunities for return, while rewarding highly qualified innovators. LTG's management team is comprised of experienced patent managers and strategists that have collectively generated over $1 billion licenses, settlements and damages awards to date. Management will be presenting at the Marcum LLP MicroCap Conference.
About the Patent Stock Review
Each issue of the Patent Stock Review covers publicly traded companies of interest in patent monetization and includes hyperlinks to the news origination source for full coverage. The newsletter additionally reports on the availability of streaming audio/video profiles, press releases, shareholder conferences and interviews with senior management of the companies covered.
Through Thomson Financial, the Patent Stock Review's hard copy research reports are made available to more than 22,000 of the world's largest institutional money management firms controlling over $20 trillion in assets and over 950 of the world's leading research firms including brokers, investment banks and independent research firms.
The Patent Stock Review is a wholly owned subsidiary of a public relations firm Institutional Analyst Inc. (NYSEARCA:IAI), whose mission to provide or create coverage for publicly traded companies. Please see website for full disclosure details as related on each letter released.
*Prices are as of 5/21/13.
To visit the Patent Stock Review Web site, go to:
Roland Rick Perry, Editor
Patent Stock Review
Disclosure: I am long COPY.OB.