Internet Patents Corporation (PTNT) is a patent licensing company formed out of the remaining assets of Insweb (INSW). Insweb ran an insurance brokerage website, which Bankrate.com bought for $65 million in October 2011. That left a pile of cash, NOLs, and six e-commerce patents as INSW’s remaining assets. INSW decided to reorganize as an IP company, hoping to monetize their patents through licensing.
Internet Patents Corporation (PTNT) – A Patent Speculation
Assisted Living Concepts (ALC) – In Need of an “Occupy” Movement
Assisted Living Concepts (ALC) operates 211 senior assisted living residences in the US with 9,325 units. ALC’s facilities contain 40-60 units and are typically located in middle class suburban towns of 40-50 thousand people.
The Hallwood Group (HWG) – A Tale of Legal Woes
The Hallwood Group (HWG) is a holding company that owns a specialty textile manufacturer, Brookwood Companies. HWG also held a stake in an oil and gas partnership, Hallwood Energy, that went bankrupt in 2009. HWG has been dealing with a host of litigation relating both to liabilities stemming from the bankruptcy as well as alleged patent infringement in the textile business. And while Brookwood had a run of substantial profitability from 2008 to 2010, the business tanked in 2011. Is there value in HWG hiding behind their legal problems?
SRI Surgical (STRC) – Undervalued Assets, Uncertain Catalyst
SRI Surgical (STRC) reprocesses reusable surgical linens and instruments for healthcare providers through their ten regional facilities located across the US. STRC delivers both reusable and disposable surgical products to the healthcare provider, picks them up after use, reprocesses the reusable items, and then repeats the cycle. STRC aims to enable healthcare providers to reduce operating costs through outsourcing supply management and to reduce their environmental footprint through waste reduction.
TheStreet (TST) – Trading Below Cash
TheStreet.com (TST) has more than its market cap in cash and no debt. Is there value here?
Trident Microsystems (TRIDQ) – Value in Bankruptcy
Trident Microsystems (TRIDQ) is a recent bankruptcy where there might actually be a substantial recovery for the equity. There appears to be a. downside protection in the form of substantial value to the equity in a liquidation scenario, b. upside in a reorganization of the company as a going concern, and c. a party that will go to bat for the interest of the equity holders.
Xerium Technologies (XRM) – Recurring Revenues/High Leverage
Xerium Technologies (XRM) makes consumable products for paper manufacturers. They sell two broad types of products: paper machine clothing (2/3 of revenues) and paper machine roll covers (1/3 of revenues).
Exiting Talbots (TLB) on Rumors of Potential Bids
I reported on Talbots (TLB) on December 9th as an interesting special situation. Sycamore Partners had put in an unsolicited offer to buy the company for $3.00 a share while the stock remained in the $2.60-2.70 range. Talbots stock spiked today from an open at $2.69 to the $3.10-3.20 range on a CNBC report that Golden Gate Capital and TPG were mulling bids for the company.
Mac-Gray Corporation (TUC) – Laundering Money
Mac-Gray (TUC) is an operator of laundry rooms in multi-unit housing facilities such as apartment buildings and colleges. They are the second largest company in the space with 86,000 rooms in 43 states.
Recent Activist Targets- Wausau Paper (WPP) and Information Services Group (III)
Companies with activists involved are always an interesting place to look for investment ideas. Here are a two companies with activist activity I have come across recently- Wausau Paper (WPP) and Information Services Group (III).
