!053194 Wall Street Investments and Patent Data Analysis A little known investment analysis tool on Wall Street is that of analyzing patent data for finding interesting companies or technology trends to invest in. A recent article in Barron's magazine illustrates one such financial use of patent data. The article, titled "Illinois Tool Works: A Patent Success" appeared in the May 23, 1994, issue of Barron's, page 23. It starts out as follows: "Illinois Tool Words turns out a long and growing and somewhat bewildering list of products - fasteners, plastic carriers, spray guns, arc welders, electronic devices and industrial strapping, to name just a few. But the company's most important product is inventiveness. What distinguishes its wares from the run-of-the-mill is that most are specially engineered. ITW applies for well over 100 patents a year (139 in 1993), and has patented more than 4,000 inventions. Its engineered prowess lets the company build higher profits margins into most of its products, distinguishing them from low-margin commodity items. Its approach helps ITW penetrate new markets and widen its share of existing one." The rest of the article deals with a financial analysis of ITW, its recent financial performance and stock price. Its stock price has steadily increased since 1989, recently a high of 46, though now around 40. From the tone of the article, it seems ITW is a healthy growing company. For those of you who invest and are involved with the patent community, you might want to combine both worlds and check out ITW. US patent data is probably ripe for detailed trend analysis and corporate insight that can provide valuable investment insight. Anyone want to buy me a Cray and the raw data :-) Greg Aharonian Internet Patent News Service