Seekingalpha.com has published a glowing report by John Ford about NPE Lexington Technology Group and its prospects for success with its patent infringement cases against Facebook, Linked-In, etc., and its anticipated merger with public company Document Security Systems (DSS). For those who might want take a chance there’s this inviting comment: “If DSS/LTG can win any of these large cases, DSS’s share price should at least triple. Will the share price go from $4 to $40 as was the case with VirnetX (VHC) following its Microsoft (MSFT) victory? Anything is possible with IP companies.”
Indeed it is, check Rambus for example.
One of the key reasons for the LTG/DSS merger: “As an operating business (as opposed to a nonpracticing entity), LTG will have the ability to demand injunctions, lost profits, and treble punitive damages. It really amplifies LTG’s ability to increase profits through litigation.”
What a country!
Here is Ford’s conclusion:
“I like both these companies individually, and together they form an intellectual property powerhouse built on an established $15 million a year operating corporation. Based on the combined patent portfolio, in my estimation, the revenue potential exceeds $1 billion. If the new company prevails over Coupons.com, Facebook, and the other four defendants, and if it achieves its goal of generating hundreds of other licensing settlements, shareholders should be rewarded.”
$1B in patent revenue! Take that IV!
Here is a link to the article with much more detail about TLG and DSS, the patents being asserted, the revenue opportunity, and the risks : http://seekingalpha.com/article/910321-facebook-lawsuit-could-send-document-security-systems-share-price-soaring