5-Star Stocks Poised to Pop: RPX
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, risk-management solutions specialist RPX
With that in mind, let's take a closer look at RPX's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||San Francisco (2008)|
|Market Cap||$714.4 million|
|Trailing-12-Month Revenue||$141.3 million|
|Management||Co-Founder/CEO John Amster|
Co-Founder/COO Geoffrey Barker
|Trailing-12-Month Return on Equity||14.5%|
|Cash/Debt||$250.0 million / $6.1 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
This past summer, TMFTypeoh tapped RPX as a particularly potent opportunity:
Hang [on] to your hat, this one could get crazy! Business model looks solid, financials look solid. Should be a crazy trader in the short term due to the IPO, but I'm putting real money behind this Gem.
RPX even boasts a robust trailing-12-month operating margin of 33%. That's higher than that of other business service stocks like ADP (NYS: ADP) (18%), Thomson Reuters (NYS: TRI) (16%), and Fiserv (NAS: FISV) (24%).
CAPS member TMFIPO2011 elaborates on the RPX bull case:
**An industry-disruptive business model that brings order and efficiency to the exciting world of patent litigation and assertion.
**A rapid growth engine, mixed with sticky customers and the recurring revenue they provide.
**A network effect is being born -- client growth means RPX collects more subscription fees, which leads to additional patents purchased, making ... its services incrementally more valuable for each new client.
What do you think about RPX, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track RPX?Add it to your watchlist.
At the time this article was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned.Motley Fool newsletter serviceshave recommended buying shares of ADP. The Fool owns shares of Fiserv. Try any of our Foolish newsletter servicesfree for 30 days.We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.