Acacia Research

Another stock that's already starting to breakout is Acacia Research ( ACTG), which, through its operating subsidiaries, acquires, develops, licenses and enforces patented technologies. Acacia Research operating subsidiaries generate revenues and related cash flows from the granting of rights for the use of patented technologies, which its operating subsidiaries own or control. This stock has been a monster performer so far in 2011 with shares up over 70%.

In case you have been asleep at the wheel, stocks with big patent portfolios have been in play on Wall Street this week. Shares of patent player InterDigital ( IDCC) have skyrocketed over 70% in the past five days after rumors circulated that Google ( GOOG) might be interested in buying the company. This news is going to get more and more traders interested in Acacia since it also is a patent portfolio play.

If you take a look at the chart for Acacia Research, you'll see that this stock has just started to break out above some past overhead resistance at around $42 a share. The bullish thing about this breakout is that it's coming on huge volume. Volume on Thursday (an up day) was 1.49 million shares which is well above its three-month average volume of 398,000 shares. Volume today has already registered over 800,000 shares with the stock up sharply.

One could be a buyer of this stock on any weakness and simply stop out a few percentage points below your entry incase ACTG isn't ready for the primetime yet. Keep in mind that an IDCC-type move could happen here, and it doesn't hurt that ACTG is now trading at all-time highs. When a stock starts to print all-time highs, it's an extremely bullish trend that often times means a stock is setting up to move significantly higher.

Acadia is one of the top holdings of George Soros.

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