Marathon Patent Group: Q1 2015 Earnings Preview

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IP Hawk
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Summary

  • Q1 2015 revenue estimates broken down by announced deals during the quarter.
  • Q1 2015 significant events.
  • Q2 2015 events that I am watching.

Marathon Patent Group (NASDAQ:MARA) will be releasing Q1 2015 earnings within the next two weeks. MARA has recently been disclosing more settlement agreements, which they previously kept mostly undisclosed. This is very common in the patent licensing world. Nearly all patent licensing agreements are kept confidential in the patent sector. MARA continues to be my best investment idea in the patent sector for 2015.

Q1 2015 revenue estimates broken down by announced deals during the quarter

Selene Communications - Announced an agreement with Alert Logic on February 2, 2015. I view the deal likely as being very small as Alert Logic is not a significant defendant in the portfolio and it was before the scheduled Markman Hearing.

Signal IP - A deal with Volvo (OTCPK:VOLVY) was announced on March 2, 2015. The deal was with one of the smaller defendants before the March 31, 2015 Markman Hearing in California. I do think there could be some upside and the could be in the $300K-$600K range. I prefer to model the low end of my range.

TLI Communications - Signed deals with Photobucket and SmugMug before the Markman Hearing was held in Virginia. The Markman Order was issued, which had an adverse ruling against MARA. I view both deals as very small.

Vantage Point - Signed deals with 14 unnamed defendants along with SugarSync. The agreements with the 14 unnamed defendants were after a favorable Markman Opinion was issued for MARA along with two Inter Partes Review challenges were not instituted at the patent office. I expect the deal to be in the range of $2.5mm - $3.0mm. MARA purchased this portfolio for $600,000 on September 25, 2013, which should put this portfolio well into the black for its monetization program.

Q1 2015 significant events

The first event in Q1 was

This article was written by

IP Hawk profile picture
502 Followers
I am an active investor in IP-centric investments for 6 years. I specialize in high risk / high reward situations both public and private. It is important for investors to plan for all outcomes as the litigation surrounding the IP investment takes many twists and turns. Extracting profits and limiting exposure are the keys to success. I hope to provide information and strategies, which both expert and novice IP investors can profit from. Follow me on twitter for the latest updates in the IP space: https://twitter.com/TheIpHawk iphawk@outlook.com

Disclosure: The author is long MARA. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

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