originally posted in:TFS The Floods Sanctuary
A Good Troll's Free Stock Tip Of The Day:
Buy ACTG. Down 24% on the day on harsh selling after quarterly earnings which actually met expectations on profit/revenue. Near 52 week low, PEG ratio of 0.6, foward P/E of 8.32, no debt, heavy hedge fund holding, low short float, strong buy recommendation by analysts.
Easiest buy I ever made.
English
-
[quote]harsh selling after quarterly earnings which actually met expectations on profit/revenue[/quote]So, why the sell-off?
-
Edited by A Good Troll: 4/19/2013 6:49:34 PMFuture forecast outlook most likely and the significant drop in revenue from the prior quarter spooks some people, especially people in small caps that are used to seeing quarter over quarter double digit increases in revenue and profit. ACTG is a fun company (to me anyway) because they are basically patent trolls. They don't manufacture or create anything - their entire business model is buying or licensing patents from people - and then suing or threatening to sue people. Must be a fun job. They're a very small, lean company. 55 employees with $350+ million in yearly revenue. Over $6 million revenue per employee. Big numbers, even for small company.