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Re: Tinkerer post# 13917

Friday, 08/23/2013 11:44:07 AM

Friday, August 23, 2013 11:44:07 AM

Post# of 46685
Not bad. I like the list.

A couple of things I would add:

* All patents were NOT created equal. News of what other companies are doing, the developments of other patent cases, variables of other patent companies' licensing agreements/settlements, etc. almost always are irrelevant to your investment.

* Not all patent assertion entities have the same business model. Some companies are inherently riskier than others based on their model (e.g., high stakes litigation vs. small-ball settlements).

* Capital structure trumps everything else. Don't trust the number of shares you see at Yahoo Finance or MSN. Go read the SEC filings yourself to see the fully diluted capital structure of your investments.

* Not all patent litigation companies are pre-revenue stocks trading on the OTCBB. Some are actually profitable and trade on the Nasdaq, NYSE MKT, etc.

* Don't be afraid to buy and sell in tranches, and resist the urge to move All-In or All-Out at any one point in time. It's very prudent to take partial profits at any time, especially after big parabolic moves upward.

* News that does not affect a company's ability to earn future revenue should be heavily discounted.