Someone had a big chunk of shares to sell.
I reviewed the trades yesterday. The reason why the price fell so hard so fast was due to a lack of bids on the way down. I do not have a position. Why? I was waiting for the price to decline! And I missed the chance to pay five or six cents per share. The price later recovered. Pricing is volatile this morning, but volume is not very active.
In the short term, MVPI should be viewed more like a contingent value right (CVR) than an operating business. There is huge upside based on the patent infringement case against Google.
However, it will take time. I am not talking months, but potentially years.
If Google is found guilty, they will most likely appeal to the U.S. Court of Appeals and then, if necessary, petition for certiorari asking the Supreme Court to review the matter.
If I was the owner-manager of Google, I would attempt to settle before going to trial. Anyone who has ever watched Shark Tank has seen offers for patent licensing. However, managers of large companies get to play with shareholder money. Executives do not want to be found quilty of anything and will spends large amount of money to defend themselves, I mean, the company. And the lawyers reap the benefits.
If you are a buyer at these prices, you must be prepared to average down and wait.
"Someone said it takes 30 years to be an instant success" - Gabriel Barbier-Mueller, CEO of Harwood International
