Nope, they *buy* Intellectual Property then try to capitalize on it.
They *produce* nothing. There is no investment into developing new technology, and they haven't applied for any patents of their own - just registered a transfer of an existing patent.
I can see a use for a Patent holding company, though. No, not as target practice, but as a repository of patents that offers a blanket or technology specific license for the patents in the company's portfolio. The key, however, is the license needs to be reasonably priced and offer shares to companies that offer genuine patents to the patent company for inclusion in the portfolio.
If run properly, people know where to go for their patent protection and those who are driving innovation get to share in the profits from the portfolio. Oh, and patents are checked and validated before being accepted to prevent duplication and the patenting of the obvious.
Hmm... perhaps it could then replace the USPTO or even expand to handle patents from around the world?
Oh, pipe dreams... shame I don't smoke.