investora2z
11 years ago
RPXC has already done well for investors in 2013. It has appreciated by nearly 80% on ytd basis, and it has doubled compared to the 52 week low of $8.55 made in November. The last two months have seen a 15% rise in the stock, which makes it a bit vulnerable to profit booking in case of negative news flow. The earnings are going to be declared at the end of this month, and that could be a short term trigger for the stock. Good earnings can take it beyond $19 levels, but negative surprises could lead to a lot of profit booking. So the exposure will be risky as usual. Even the last earnings had led to some profit booking, and thankfully the stock managed to stage a smart rebound. The valuations are higher, and good numbers will help improve the ratios. The ttm P/E is around 21.66, and the forward P/E (fye 31-Dec-2014) is 16.75. The difference indicates moderate expectations of growth over the next 4-5 quarters. This is inline with the management guidance for around $229 - $235 million in revenues, and Non-GAAP Net Income of between $50 - $53 million for 2013. The ttm revenues are currently around $217 million and the net income is $43 million. In 2012, the revenues were $197 million and the net income was $38.45 million. Considering the good growth trends in the market, there is scope for good growth in the top line. However, competition is also increasing, and several companies have become more aggressive in the marketplace. A patent assertion entity Spherix (SPEX) has recently acquired hundreds of patents with a clear strategy to monetize them through litigation and licensing. It has filed cases against giants like T-Mobile (TMUS). RPXC has a strong balance sheet with zero debt and good amount of cash. So the upward momentum can increase if the numbers are good.
investora2z
11 years ago
The stock has corrected significantly after the earnings. Exposure to earnings is always risky, and has a 50-50 chance of success. It is more speculative than anything else. For RPXC, the revenue increased slightly from $55.2 million in Q2'12 to $57.5 million in Q2'13. Net income declined from $13.2 million (25 cents per share) to $10.7 million (20 cents per share) – a 20% drop. For the full fiscal 2013, RPXC management expects total revenue in the range of $229 - $235 million, and net income (non-GAAP) - $50 - $53 million, which is actually an improvement from the earlier guidance. Zacks recently downgraded the stock and has a PT of $20.30, while analysts at Barclays Capital had raised their price target from $17.00 to $18.00 in early July. Despite the correction, the stock has done well over the last few quarters. It is up 35% on a 52 week basis, and 61% in 2013. Correction has improved the valuations slightly, and now the stock is trading at a P/E (ttm) of nearly 19 (forward P/E 14.8). There was another article on seekingalpha recommending to buy RPXC. The unique business model of RPXC and its expanding economic moat are the main reasons for the author's positive opinion on the stock. RPXC helps the companies avoid costs by mitigating patent litigation. This is important because litigation is time consuming and costly. Patents monetization is big business now, and even smaller companies like Marathon Patent Group (MARA) have been able to enforce settlements against bigger companies. The author considers RPXC as undervalued as the entire company can be bought for less than the cost of its patent portfolio. The article also mentions some risk factors, and hence needs to be read in totality.
investora2z
11 years ago
The results have given another leg to the uptrend. It is getting close to the 52 week high and some analysts are of the opinion that the valuations may be getting stretched. JP Morgan analysts have downgraded RPXC to neutral from overweight and the target price is only $16. This indicates that the analysts are not expecting much movement in the stock, and they think that the valuations are high. The stock is up more than 82% from its 52 week low of $8.55, and that could be one of the reasons for the lack of confidence in further growth of the stock. The trailing P/E is ~18 and the forward P/E is 15.62. This small difference also indicates lack of confidence in growth. Even the price to sales of 3.74 is high. However, if one sees the results of previous quarter, the revenue growth (yoy) was nearly 39.6% and the net income grew by 81.8%. RPXC is a zero debt company with cash of more than $283 million (against annual revenue of $215 million). Most importantly, the market of patent monetizations / enforcements is continuously growing and more and more companies are requiring consultancy / and other services. Companies are making this a business model, and some other organizations are going even beyond that. Marathon Patent Group (MARA) has filed a patent infringement lawsuit (through its subsidiary Sampo IP LLC) against big companies like Sony, Dell, Siemens etc. This lawsuit has the backing of famous small cap investors like Hudson Bay Capital, Iroquois Capital Group, Barry Honig etc. Now, Marathon is using services of IP Navigation for acquiring and expanding its patent portfolios. It recently acquired a company CyberFone and some other patents which are revenue generating. RPXC will hopefully be able to expand its client base so that the growth story can continue. Investors would hope that JP Morgan's target is taken out within a few days.
investora2z
11 years ago
Last two trading sessions have been good and the stock seems to have found support around $13. The current bounce is only two days old but the volumes have been good. If the next week remains good, and the stock is able to close above the 50 DMA of $13.52 (weekly closing), then the trend will become more positive. In the short term, the main resistance is around $14.50 and if that can be crossed, then one can be sure of a real uptrend. The main trigger will be the upcoming earnings on April 30. If RPXC beats the street, then the path will become easier. The fundamentals of the company have improved over time, and the growth in earnings has been good. In Q1'12, the company recorded a revenue of $43.85 million and a net income of $8.08 million. In Q4'12, the figures were $51.56 million and $10.10 million respectively. The requirement of the services which the company provides, is likely to grow with the market for patent monetization. Several companies have made it big with this business model, and recent examples include Vringo (VRNG). The latest company to join the list is Document Security System (NYSE:DSS). A subsidiary of DSS recently filed a lawsuit against Facebook (FB), LinkedIn (LNKD), Broadvision (BVSN) etc. The expected damages run into hundreds of millions, and DSS investors are eagerly awaiting the upcoming Markman hearing. In a recent report, patent business expert & researcher JP Moreno highlighted the potential of the growing market, and supported companies like DSS which have a diversified business model. For RPXC, the business model is such that it is not solely dependent on monetization lawsuit awards or licensing revenues, but has access to the potential of those events. In any case, it is safer to buy or add after the results. Alternatively, one can trade with a stop loss below $13.
investora2z
11 years ago
RPXC which provides patent risk management solutions, offering defensive buying, acquisition syndication, patent intelligence and advisory services, is on an uptrend since last few months. It provides a subscription-based patent risk management solution that facilitates exchanges of value between owners and users of patents. It is up nearly 74% from the 52 week low made in November 2012. The trading volumes have been upbeat with the 10 day average being only slightly lower than the three month average of 266K. This increase is backed by decent earnings. The company recorded a revenue of $197 million for 2012 compared with a revenue of $154 million in 2011 (an increase of ~28%). The net income also increased from ~29 million in 2011 to ~39 million in 2012 (an increase of 31%). The net profit margin is around 19.7%, and the forward P/E is 14. The quarterly revenue growth is also good with ~22% and ~46% growth in revenue and net income respectively. The company has zero debt on books, and has $199 million cash & cash equivalents. Institutions hold around 55% of the stock, and insiders are holding nearly 36%. The good margins and healthy balance sheet indicates inherent strength in the fundamentals. Patent monetization has itself become a business model now, and it is expected that the company will continue to leverage the enhanced interest of other companies in this field. Several lawsuits have been filed for infringement of patent rights by companies, latest being Marathon Patent Group (MARA) against Sony, Dell etc. Lawsuit filed by MGT Captial Investments (MGT) against gaming companies also made news recently. These lawsuits can be game changers for these companies. Companies which are in drug development e.g. Spherix Inc. (SPEX), or even companies in other research and development fields are beginning to realize the potential value of the knowledge the possess. All such companies will definitely require services of patent risk management / consultant services, and professionals like RPXC may be able to encash on the increasing market.
mlkrborn
13 years ago
RPXC recent IPO sold stox again? $20...now $22..What is it? How different than its competitor?
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_R/threadview?m=tm&bn=126820&tid=1&mid=3&tof=-1&rt=1&frt=2&off=1
RPX Announces Pricing of Follow-On Offering of Common Stock
Date : 09/15/2011 @ 8:30PM
Source : GlobeNewswire Inc.
Stock : RPX Corporation (RPXC)
Quote : 21.92 1.43 (6.98%) @ 9:33AM
RPX Announces Pricing of Follow-On Offering of Common Stock
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Rpx Corp. (MM) (NASDAQ:RPXC)
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Today : Friday 16 September 2011
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RPX Corporation (Nasdaq:RPXC) today announced the pricing of its follow-on offering of 3,000,000 shares of its common stock at $20.49 per share. RPX will sell 1,400,000 shares and selling stockholders will sell the remaining 1,600,000 shares in the offering. In addition, the underwriters have been granted a 30-day option to purchase up to an additional 450,000 shares of common stock from the selling stockholders.
Goldman, Sachs & Co., Barclays Capital and BofA Merrill Lynch have acted as joint book-running managers, and Allen & Company LLC, Cowen & Company, Baird and Lazard Capital Markets have acted as co-managers.
A registration statement relating to this offering of common stock has been declared effective by the Securities and Exchange Commission. Any offer or sale will be made only by means of a written prospectus forming part of the effective registration statement. Copies of the final prospectus relating to the offering may be obtained from:
Goldman, Sachs & Co.
postyle
13 years ago
RPX to Report Second Quarter 2011 Financial Results on 8/2/11
Press Release Source: RPX Corporation On Thursday July 14, 2011, 7:00 am EDT
SAN FRANCISCO, July 14, 2011 (GLOBE NEWSWIRE) -- RPX Corporation today announced that it will release its financial results for the second quarter ended June 30, 2011 after the market closes on Tuesday, August 2, 2011. RPX management will host a conference call and live webcast for analysts and investors at 5:00 p.m. EDT on that day. The news release with the financial results will be accessible from the company's website prior to the conference call.
Parties in the United States and Canada can access the call by dialing 1-877-941-8416, using conference code 4457074.
International parties can access the call by dialing 1-480-629-9808, using conference code 4457074.
RPX will offer a live webcast of the conference call, which will also include forward-looking information. The webcast will be accessible from the "Investor Relations" section of the company's website at www.rpxcorp.com. The webcast will be archived there for a period of 30 days. An audio replay of the conference call will also be available two hours after the call and will be available for 30 days. To hear the replay, parties in the United States and Canada should call 1-800-406-7325 and enter conference code 4457074. International parties should call 1-303-590-3030 and enter conference code 4457074.
Press Release link
postyle
13 years ago
Forbes article on RPX and the Nortel Patent Auction...
An Insider On The Nortel Patent Auction And Its Consequences
Jul. 7 2011 - 11:40 am
Google’s bid for Nortel’s collection of technology patents was ill-fated early on, says a fellow bidder in the $4.5 billion auction, which concluded last week. The record amount of money raised may also spur other tech companies to sell their intellectual property, according to patent protection company RPX Corp.
Nearly a week after its conclusion, the IP auction held by bankrupt wireless gear maker Nortel continues to attract fascination. Why didn’t cash-rich Google bid more? Why did rivals Apple, Microsoft and Research In Motion band together — along with three other companies — to submit a winning offer? How will Nortel’s more than 6,000 patents, which address multiple areas within telecommunications, be utilized after the sale gets regulatory approval?
Most of the companies involved in the auction, including all six of the winning companies, have declined to discuss the event and their subsequent plans. San Francisco-based RPX, which took part in the auction, was willing to share some observations, however.
Though early media reports pegged Google as the frontrunner, based on the $900 million “stalking horse” bid it submitted back in April, RPX Chief Executive John Amster says other auction participants soon spotted Google’s weak position. “We never once thought Google could win it,” said Amster in an interview.
The reason: a number of other companies clearly wanted to both own the patents themselves and keep them away from Google. Once enough large companies (Apple, EMC, Ericsson, Microsoft, RIM and Sony) united against Google, it “became very clear…that the combination of those balance sheets would be much more powerful than what Google had on its own,” said Amster.
Most participants didn’t enter the late June auction intending to partner up. (RPX, which headed a consortium of 20-some tech companies called NORPAX was an exception.) But the bidding quickly grew high enough that participants recognized they needed to join forces to prevail. “At a certain point, people realized that a single company wouldn’t end up owning [all the patents],” said Amster.
The competition knocked RPX’s group out of contention. “Prices…got to a level where owning the patents became much more important and having them be purely defensive became not viable,” explained Amster. As a defensive patent aggregation service, RPX only purchases IP as a protective measure for its clients. That means that RPX does not use its patent portfolio to pursue lawsuits. Accordingly, RPX does not spend outsize sums on IP with the expectation that it will make back the cost through large settlements. The company’s record backs this up. Since its 2008 founding, RPX has spent $260 million on about 1,500 patents.
Was $4.5 billion a fair price for the Nortel assets? Though Amster calls the sum a “shockingly big number,” he noted that the patents hold strategic value that is difficult to quantify. “Each company had different reasons why they didn’t want Google to own the patents,” he said. “The value was driven by the desire to ensure [that wouldn't happen].”
The many patent suits flying around the tech industry were another intangible factor in the auction bids. Amster said Nortel’s patent trove was likely viewed as a “strategic element” by companies that are wrestling with lawsuits and settlement discussions. “It could change the balance of some of these ongoing litigations and cross-license discussions,” he said.
The patents’ value isn’t completely theoretical. Amster believes at least some of the winning companies will license their new IP. He is skeptical, however, that the patents will pay for themselves. Saying the patents will be able to generate $4.5 billion or more in licensing fees is a “dangerous assumption,” he added. Doing so, he reasoned, would assess the patents at a price higher than many companies’ entire worth. And that could have unwelcome repercussions for the mobile communications market or even the entire tech industry, he said.
There may be other ramifications due to the auction’s outsize profits and publicity. Amster expects some companies that previously were not interested in selling their patents will now try to cash in like Nortel. (The Nortel proceeds will benefit the company’s creditors.) That could create inflation in the patent market.
At the same time, Amster anticipates the impact will be relatively limited. Nortel’s auction was an exceptional event, he pointed out. First, it involved an unusually large collection of patents. Secondly, the patents were considered especially valuable because they covered more than 100 years of research and development, including up-and-coming technologies like 4G/LTE. Third, the auction was expedited by Nortel’s bankruptcy proceedings and the involvement of the Canadian courts.
In comparison, future patent transactions are likely to be smaller in scale, draw less attention and progress more slowly, said Amster. “These were fairly unique circumstances,” he said.
What is not unique is tech patent litigation and the corresponding interest in patents for defensive and offensive purposes. RPX estimates that the number of suits in the areas it focuses on (consumer electronics, e-commerce, media, mobile communications, networking and semiconductors), steadily rose throughout 2010. “Litigation is increasing,” said Amster. “More value is being placed on patents in general.”
In a way, these trends, which RPX says are being driven by the consumer electronics and mobile communications markets in particular, benefit RPX. The company currently counts more than 80 tech firms as customers, including Cisco, Dell, Hewlett-Packard and Qualcomm. Most of the large mobile device makers, such as HTC, LG, Nokia, RIM and Samsung are also RPX members.
RIM’s inclusion in the winning Nortel consortium doesn’t carry any advantages for RPX, however. Large companies like RIM often rely on RPX for certain transactions but also pilot their own IP strategies, Amster explained. “We’re one arrow in the quiver for these companies,” he added.
Source: http://blogs.forbes.com/elizabethwoyke/2011/07/07/an-insider-on-the-nortel-patent-auction-and-its-consequences/
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