Unless you shorted between Friday’s close of $21.25 and the all time high of $21.75 your short position is in the red or you closed it out and are licking your wounds. The vast majority of short traders have taken a terrible beating the last two weeks and I hope they have learned something about VirnetX.
Looking ahead to the next 90 days what developments can we expect that will impact VirnetX’s stock price?
Patents: flyersdh over at the IV board has been tracking VHC’s patent applications and he has indicated that one patent will be official on April 5th and two others appear to be close.
Clarification on VirnetX’s 4G patents and licensing from the 3GPP or one of its member organizations - ETSI or ATIS: Anyone who has not read mkarstens post yesterday should. On April 19 and 20th ETSI is going to take up issues critical to VirnetX with documents provided from the ETSI General Assembly Chairman and from the ETSI General Director, concerning VirnetX to the ETSI General Assembly, (which is held twice a year).
Institutional Holdings: now that the 1st quarter has ended all funds are required to update their holding within 45 days. It is my belief that there has been a significant participation by funds in the recent rally. Consequently, I would expect that we will see a large percentage increase in the fund’s holdings of VirnetX stock.
Analyst coverage by a major firm could come at any time: 4G is heating up and Release 10 of the 3GPP alliance is focusing interest on companies that have foundational patents crucial to 4G. VirnetX has the 4G security patents. Possible updates from Konlin, Dawson James, and Oakley’s Wall Street Corner, who have all covered the stock in the past, are also a possibility.
Russell 3000 rebalancing: The 2011 reconstitution of the Russell Indexes will take place after the market close on June 24, 2011. VirnetX is currently included in the Russell 3000 Index and the Russell Global Index. Now that VirnetX has a capitalization of around
one billion it could very well move up to the Russell 2000 or be included in some other Russell Index. The rebalancing will make for a couple of exciting days with massive volume and possible price spikes.
Annual Stockholders Meeting May 26th at the offices of Wilson Sonsini Goodrich & Rosati will focus interest on current developments with the company. (Note where the meeting is being held).
Developments out of left field that could happen at any time:
--settlement with any one of the six companies that VirnetX is suing…most likely Apple, imo as they are right now designing and signing production agreements for their 4G compliant devices due out next year.
--new lawsuit(s) filed by McKool Smith the premier IP litigation firm in the US on
--licensing agreement(s) signed with any of the hundreds of members of the various
mobil telecommunications standards bodies.
--establishment of the Secure Domain Name Registry by VirnetX.
--an announcement to the mobile industry by VirnetX that Gabriel Software
Development Kits (SDK) are available.
--International Telecommunication Union industry wide announcement to
telecommunication and mobile companies that the International Mobile
Telecommunications- Advanced (IMT-Advanced) standards are available for 4G.
ETSI, ATIS, 4GPP are all working on this. VirnetX will supply the 4G security.
--Cyber Security Bill gets passed into law requiring a Secure Domain Name Registry
which Virnet’X 504 patent covers.
If you read the above you will understand why you do not want to be short or out of your long position. This is the real deal.
(p.s. a thanks to flyersdh for his help in compiling this list.)