Acacia Research (ACTG – Snapshot Report) has consistently been a Zacks #4 Rank (Sell) or #5 Rank (Strong Sell) for most of the past three years. In that time, the stock has fallen from $30 to new 7-year lows this month under $4.

Acacia Research Corporation, through its subsidiaries, develops, acquires, and licenses patented technologies. It assists patent owners with the prosecution and development of their patent portfolios, protection of their patented inventions from unauthorized use, generation of licensing revenue from users of their patented technologies and enforcement against unauthorized users of their patented technologies.

The slide in ACTG shares really accelerated in 2015 as analyst earnings estimates plummeted further. Here’s what I wrote in June when I profiled this earnings evaporation…

Since March “full-year EPS estimates have cascaded from $0.50 to $0.21 for 2015 and from $0.86 to $0.68 for 2016.”

Here’s today’s update: Full-year 2015 slips from $0.15 to a loss of 1-cent and 2016 projections go from $0.65 to just $0.20.

You can see the longer-term EPS decline in the Zacks proprietary Price & Consensus chart…

Clearly, ACTG has been a terrific short position for several years. When the Zacks Rank locks on to a consistent earnings decliner, the shorts don’t let go.

So, until this earnings evaporation stops and reverses, it’s probably best to keep this portfolio of patents out of yours.

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