Marathon Patent Group, Inc. (OTCMKTS:MARA) Marks Record Activity
It is a tradition for some penny stock companies to change identities each year. So far, Marathon Patent Group, Inc. (OTCMKTS:MARA) is on its third incarnation, this time trying to take up the dynamic and lucrative business of patent lawsuits. On the OTC markets, MARA lists its activity as sanitary services, and until a few months ago it traded as American Strategic Minerals Corp. The new company is logging record volumes and prices, reaching 45 cents. The ticker added more than 40% in the past few days. 
We have no recorded promotion for MARA, but the ticker is mentioned in several press releases, adding to the investors’ interest. A promotion may come in the following months, to popularize the new company.
MARA recently released quarterly results, and let’s see if it is ready to take up the patent and patent lawsuit business:
- $2.3 million cash
- $87,822 total liabilities
- Zero revenues
- $6.9 million annual net loss
So far, MARA shows an accumulation of losses, though not of too much debt. The company is capped at around $20 million, with 45 million shares outstanding.
The patent business is a busy marketplace, with giant corporations protecting the most patents and smaller entrants trying to build a portfolio that could turn out valuable in the future. The competitive advantage of MARA is that is searches for obscure patents, which sooner or later may be reinvented by a larger corporation. Then, the legal owner of the patent may sue for significant sums for patent infringement. But financial success depends partially on luck, and also on the ability of MARA to lead a successful lawsuit.
So any promises of free money streaming in for MARA and supporting the stock are mostly overrated. Just like the promises to find gold and other metals were overrated for American Strategic Minerals. On the plus side, MARA is partners with leading patent licensing company IP Navigation.
Still, MARA has marked zero revenues and is still to show a capability to perform as promised before it runs out of time and cash. At 45 cents, MARA may be a relatively accessible bet, but it is best to stay away from unknown penny stocks unless you can afford the sharp corrections that often follow a spike in price and volumes.
