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Publicly-quoted IP-based businesses have suffered significant losses in share price and market capitalisation since the start of this year, according to a completely unscientific review of their performances undertaken by IAM today. Of the 10 companies featured on the extremely Unofficial IAM IP Index, eight have experienced declines since 2nd January, when markets opened for business in 2012.
The only two that have bucked the trend are the UK’s Murgitroyd and RWS. Coincidentally, or perhaps not, they are also the only IP service providers on the list; the former being a patent attorney firm, the latter majoring on translations and database searches.
The biggest faller since the start of the year has been Pendrell, which has seen its share price drop by more than 50%. On the other hand, defensive patent aggregator RPX has to all intents and purposes stayed where it was. For its part, after a long period of share price growth since the end of 2008 Acacia has fallen back somewhat. That said, things were actually looking pretty steady until 19th July, when the NPE announced its most recent results. Since then the share price has fallen from $40.11 to stand, at around 12.15 EST today, at $31.43 – a fall of close to 25%.
Of course, these are just snapshots of longer term trends and in and of themselves they mean very little. But at a time when we are talking of tipping points and increased investor interest in IP, it is perhaps worth reflecting on the fact that, as we all know, shares can go down as well as up.
Anyway, here’s what has happened to the members of the Unofficial IAM IP Index since 2nd January. The first figure is the percentage rise or fall in the share price since that day; the second figure is market capitalisation as at around 5.15 pm UK time (12.15 pm EST) on 30th July:
• Acacia (Nasdaq): -13.34%/$1.57 billion
• InterDigital (Nasdaq): -40.05%/$1.158 billion
• Murgitroyd (London): +25.42%/£32.29 million
• Pendrell (Nasdaq): -56.64%/$226.14 million
• RWS (London): +21.3%/£207.67 million
• Rambus (Nasdaq): -44.24%/$464.83 million
• RPX (Nasdaq): -0.47%/$631.22 million
• Tessera (Nasdaq): -10.27%/$779.98 million
• VirnetX (NYSE Amex): -12.05%/$1.116 billion
• WiLan (Toronto): - -13.63%/C$615.94 million
Note that the Unofficial IAM IP Index does not claim to list all publicly-quoted IP-based businesses. We are no doubt missing quite a few. If there are any you would like to see on the list, please let us know and we will be happy to oblige. Right now, we don't do much more than keep an eye on share price and market cap movements from time to time. I don't hold shares in any of these companies.
IP management, Licensing, Patents, IP business, IP valuation