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VirnetX Holding Corp Message Board

  • investora2z investora2z Aug 1, 2013 11:36 AM Flag

    Short term weakness

    The stock has been weak over the past few months due to adverse news flow related to the trials. The appeal by Apple (AAPL) was expected, but still led to additional pressure on the stock. It was already weak after the adverse judgment in the Cisco (CSCO) trial. The long term investors would like to stay invested in the stock because many strongly believe that the appeal by Apple will not succeed. It will only delay the outcome, and increase the award due to additional interest etc. While success in the appeal cannot be considered certain, there have been many analysts who think that Vringo is in a better position compared to Apple. However, the short term weakness in the stock may remain till there is some positive news flow. The stock had shown strength by bouncing back from $16 to $24 after the crash following the Cisco case ruling. So it is also possible that it may make a comeback sooner than expected. The data related to shorts for July 15 indicated massive levels, and it will be interesting to see how the traders are positioning themselves now. VirnetX is now a stock for the investors who believe in the strength of its patents portfolio. They can live with these wild fluctuations due to news flow from time to time. The sole dependence on these lawsuits makes the stock relatively unstable. There are many companies which have reduced sole dependence on lawsuits by making their business models more balanced. Spherix (SPEX) was mentioned in one seekingalpha article as a company which has become a full service patent company and also acquired numerous patents. There was another article on seekingalpha which expressed faith in the long term story of VirnetX. Hopefully, the sentiments will improve soon.

 
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