VHC - VIRNETX - Mobile internet security - Hottest technol Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : VHC - VIRNETX - Mobile internet security - Hottest technol

VHC 21.40

+3.7%

Oct 29 3:56 PM EDT

Public Reply Prvt Reply Mark as Last Read File

Next 10PreviousNext

From: wallstreeter	9/7/2010 1:35:35 PM
	Read Replies (1) of 43

Great analysis Article of the multi billion dollar value of VHC's patents. seekingalpha.com Back when I first started covering VirnetX in 2006 they were an unknown company trading at a mere $.50 cents while having a small market cap around $25M. Then in early 2007 they sued Microsoft for patent infringement and after going through the legal system prevailed with a huge judgment which was finally settled out of court for $200M. This win has paved the way not only legally, but financially to go after the other companies that have also been infringing. They recently filed against Apple, Cisco, NEC and Aastra. Of course the company now proudly boasts a market cap of over $400M and its stock hit a record high of $8.87 on Friday, up 12.85% on volume of over 2 million shares. It is anticipated that once a precedent has been set on the legal front it is much more likely that the latest companies in the crosshairs will license as opposed to battling in court. If you can beat a titan like Microsoft, others are apprehensive to want to test their skills against you in the legal ring fearing they will face the same fate. If and when new licensing deals are announced, one would expect the market cap of this gem may continue to climb. Despite the move over the last year resulting in the shares being up almost eight fold from their lows, this story could still be just getting started. Currently there are rumors of potential suitors looking to take them out, makes sense to me. If that’s in the cards, the suitors better get moving since any new settlements or licenses will only add to the eventual sales price. In reality, it is just right after the critical first win that most companies like VHC would be the biggest target. The reason being that management has just accomplished their major goal; they have validated their patents and monetized them in the form of the first precedent setting settlement. Now, it’s a matter of duplicating that initial effort and leveraging the financial resources to further monetize the IP across a broader range of infringers. My guess is they have not had any lack of interest at the front door about possibilities of being acquired since the settlement with Microsoft. An acquirer knows that VHC has already done the hard work and that the true value of their validated IP, when placed inside the scale of a multi-billion dollar company, could be finally unlocked on a broad scale.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Next 10PreviousNext