Acacia Research-Acacia Technologies (ACTG)

[petermic]

Acacia Research (ACTG) is worth $6.75 plus per share, based on their holdings of VERI, which has run up a ton recently.

Here are the facts:

1. As of June 30, ACTG had 50.6 million shares outstanding, $118 million in cash, $19 million TOTAL liabilities and, per my calculation, 4.8 million shares of VERI worth $62 million. Whatever else ACTG owns was valued at only $10 million to $30 million.

2. VERI closed today at $46 making ACTG's shares of VERI worth $230 million. Three months ago, when VERI was at $13, the value was $62 million.

3. Three months ago ACTG was at $4.50, but then fell to $3, before recovering to $4.50 now. At an average of $3.75 ACTG's market cap was $190 million - mainly composed of $118 million in cash and VERI shares worth $62 million.

4. Today, ACTG has a market cap of $227 million, composed of, say, $100 million in cash and VERI holdings valued at $117 million.

5. If valued as it was in June, then ACTG should be worth $340 million - cash plus $230 million in VERI shares. That calculates out at $6.76 per share.

6. While the value of ACTG's holdings have risen from $3.75 per share to $6.75 per share, its share price has risen only $0.75. The market has given ACTG only 1/4 of its rise in value.

I started looking at ACTG only today. I'm hoping other folks will chime in with their thoughts.