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Is Vringo now up for sale?
Some interesting maneuvering has been going on inside Vringo these past weeks.
1) March 9, 2016 - Vringo, Inc. (VRNG), a diversified technology company, today announced the successful restructuring of all of its existing debt.. which results in a sweet deal for Iroquois and the next point:
2) Mr. Abbe, Co-founder,Principal & Managing Partner of Iroquois Capital Management, LLC joins the Board
3) March 16, 2016 - Vringo, Inc. (VRNG), a diversified technology company, today announced that H. Van Sinclair and Noel J. Spiegel have resigned from the Company`s Board of Directors. This is most likely as they are no longer needed or were against a sale.
4) March 18th, Vringo points out to potential buyers that 'As of December 31, 2015, Vringo had net operating loss ("NOL") carryforwards of approximately $123.5 million, which could be used in certain circumstances to offset Vringo`s future taxable income or otherwise payable taxes and therefore reduce its federal and state income tax liabilities.'
5) A new 'Employee share profit plan' is adopted to retain staff by giving them incentive to stay through an acquisition.
6) February 05, 2016 might have created this when VHC had the following: a jury in the United States Court for the Eastern District of Texas, Tyler Division, awarded VirnetX $625.6 million in a verdict against Apple Corporation for infringing four VirnetX patents. This is, in fact, the second time Apple has been penalized for infringing VirnetX’s patented technology.
7) Facts: VRNG needs a warchest
Iroquois wants it's money and has negotiated very favorable terms so they would want to be part of a sale
I expect this will happen quickly. My initial timeline was 4-6 months but after further review, it could happen much more quickly than that.
VRNG needs $, DTV would settle sooner and is a massive carrot to a potential buyer.
This stock won't see pre-split $50 but I expect a cash & share offer of between $11- $17/share. It's not great but Management will be taken care of and anyone with an average down of less than $10/share should do well. New buyers stand to make over 5 times their investment in an expected short period.
This is the conclusion I came to with my 25+ years in finance and investing. Do your Due Diligence, see what you come up with.
600+ patents
approx $1.5/share of cash
approx $8.2/share of tax loss carryforward
Pending DTV settlement (should be worth at least $3/share
Etc..
Remember, you saw it here first.
GLTALs
I agree 100%. One has to ask when posters tell you the only direction is to much lower share prices. Kidrin has always done a great job managing costs while trying to preserve shares from further dilution. Anyone who does a little DD can see this. It protects his stake as much as any of ours.
The stock has been beat up... many have lost faith... that's okay, it's normal. I have kept my shares and like the latest developments. Patent plays have gone through a witch hunt that is finally coming to a positive close.
ATVI is on the hook for a lot of money... looks like the payday is getting closer everyday.
What is the value to someone who tells you to sell? Must be because they want your shares. No thanks. I'm holding and adding still.
Low volume stocks that are driven by news have many opportunities to get attacked during quite periods. Nervous investors; this one's not for you.
WDDDs, well represented here...
Thanks DataStream & notaclueyet.
Thank you Hudson for the uber cheap shares. It helped me accumulate so many more shares than I had expected.
My guess is that it is Hudson who has been shaking the tree hard here and buying back the 8,000,000+ shares they sold last year.
The journey to here has been rough for us longs but now my boat is full and ready for the ride to Xanadu. Hope to see you paint-drying watchers there.
Settlement zone is here. PTAB review threat could force Bungie to blink, ATVI to settle...
Yes, settlement talks are underway. I believe that 100%. It's usually the case. The question is how far apart are they on the numbers?
Last year looked bleak with all the rhetoric around trolls. Typical politicking. Last year, a settlement would have favored ATVI... now it looks like it's back to WDDDs in the driver's seat.
Susman has the experience, skill and record of success to make the most of any settlement. Being on contingency means they want to keep pushing rather than just bill and let the Patent holder figure out if it was enough.
This is my favorite patent play.... but VRNG is looking pretty good lately. VHC had a great win on appeal against APPL which should make many revisit patent plays.
More important than all the chatter around possible narrow or broad definitions being applied to WDDD's patents:
1) Patentholders are upset and changes to better protect them are underway at the highest levels of government. The pendulum has swung back to favor those who hold patents and it looks like that process is going to keep moving in that direction.
2) Volume here has moved up significantly over the past couple of weeks. Tired (trapped) longs are selling at pennies on the dollar but only because someone has come to buy them out of their pain. Capitulation, yes but why would someone be buying so much?
3) Susman has a large investment in WDDDs at this point and has done a great job of keeping the wheels on the bus here.
Look for settlement talks to get more serious as these new changes only make Treble Damages & ongoing infringement on all the games ATVI have out there that infringe... all the more expensive for them.
Wow... I waited and waited but seems no one wants to talk about VRNG being up @ $1.92 after hours or the huge win by our friends at VirnetX...
Apple ordered to pay $625M in patent infringement dispute with VirnetX
Isn't this great news?
Well said Red.
Long and Strong here.
You are entitled to your opinion as is everyone... but with what do you back up such as bold statement?
I backed up mine.
Looks like it's your turn:
Yes... and no.
Corporate Housekeeping can be done anytime.
It's the timing that is curious to me.
The company has been mostly silent in 2016. They have new products under development, a stockprice below cash levels, a refocused mandate on US-based infringers, and a huge patent portfolio.
Add in new patents that came with their latest acquisition, positive expected changes for patentholders coming and 2016 has a much better flavor than 2015.
Housekeeping is a very necessary step for large investors. Others can say what they want but I have experience in this area. I see what I see and timing and juxtaposition was and remains curious to me.
We've seen some strong volume this year for this stock... someone has the appetite to keep buying... I like what I see.
Snooze,
maybe you are Not up on the news... but I suggest you look into all the chatter around what is being done to restore balance to patentholders by the government this year (2016).
I realize many have become very negative on VRNG but not everything is bad news. I expect to see an institutional investor make a substantial investment here soon and this change was at their request.
2016 is going to be a very different year for Patent holders than 2015.
VRNG24... real news, excellent DD.
Thanks again for real posts. :)
Yep, it's a great Trend for Shareholders.
Thanks for the reminder VRNG24, much appreciated.
Ok,
It's easier to just address the last few posts from different
users in a fresh post rather than in response to a thread... so here goes:
1) Management has done nothing wrong. You may have fallen in love with an idea and it just hasn't happened yet. They did a great job chasing GOOG & ZTE. The courts in the US let you, me, VRNG & it's other shareholders down. Get mad at them.
2) Litigation is about picking your battles. With the success of GOOG (at the time), ZTE made sense. Once GOOG went upside down, some hard choices had to be made. Personally, I felt that VRNG thought ZTE wouldn't even pay the $21MM and maybe they almost didn't but someone over there figured it was double-bad for them if they didn't. Obviously they did pay or the court-withdrawals would not have happened.
3) Increase in Comp: If you've ever worked for a large corp in any kind of professional capacity, you know that your comp is many times baited with options, etc. With the share price tanking, some tough calls had to be made for retention purposes. You don't want top talent walking out the door, especially when you are a boutique Intellectual Property services company. Your people are a big part of your company.
4) Quit moaning about short term issues. These boards are best for all of us long or short if there is useful information we can all add to our DD. Emotions just label yourself as a Short or a Pumper.
5) Learn as much as you can about the company. I like what I see and personally see the sub $2.00/share as a shakeout of retail margin accounts. It may go a little lower while shares are sold by investors who got caught or liquidated by Trade Houses for those who can't cover their Margin Calls. Smart traders look for these events to get cheap shares by shorting to below $2, forcing a margin call (causing a supply sided issue which further drops the share price), then suppressing the share price for minimum 3-5 trade days, then picking up a larger volume than they shorted. It has nothing to do with the company.
6) Stocks don't usually reflect the real value of a company. Inefficient pricing is the key. When a company (broken down by share) is worth more than their share price, do some DD. It could be a great opportunity. If the share price is elevated over the value of the company, it might be ahead of itself and a good time to exit, wait, and come back.
So, stop watching your stocks everyday unless you are a Day Trader. I like to trade high volume (liquid) stocks for that. Put this one away with Alerts. You will be happier and richer.
Sub $2 is a great place to pick up shares. Why?
Margin calls.
Most Brokers won't offer Margin on this stock below $2 so there is over selling
I don't believe I mentioned your name... and personally I don't know anyone who bashes a stock they own. It's counter-intuitive and smells of someone shorting or accumulating.
VRNG has done nothing but bring the best in class talent to their side to get the verdicts in their favor. Management (as a collective) own a substantial amount of shares. They have a vested interest here to drive the share price up.
With all that said... Traders trade. In the absence of News, they bash... but we all know that already. IP companies in settlement talks usually cannot talk about anything with the public so it's predictable and is used to fear monger. No worries, I know that and use these times to accumulate. Remember to trade the Market you have... not the Market you want.
If the story is so bad... sell & find one you love. Let someone else carry this burden for you. No one should be unhappy with their life. Divorce is legal. Fresh starts happen every day.
Love to see all the Short talk here... I smell capitulation.
Keep shorting, keep talking about how you hate management. It's all good.
I will keep buying up the shares you scare loose.
@VRNG24,
Great Post. I like real info. Much better than the fear or pumping as seen by others elsewhere.
With the $21MM from ZTE, and I think it was $13MM they had on hand, yes? Plenty of cash and sounds like the Patents FliCharge holds will bring more revenues from other companies in the same space. Seems to be a lot of concern around radiation off the inductive chargers leaving conductive as the safer choice
(CDC just released another warning on cellphone use).
With less than 12MM shares... we are well below cash levels at the current shareprice. You can see some saying the burn rate is high to justify this depressed share price which... anyone with a litte DD can see that is not the case and that the $50MM shelf is part of a poison pill to protect the company from a hostile takeover.
2016 is going to be very good for VRNG. VRNG Management learned a lot from ZTE. American companies won't get away with the crap they pulled.
VRNG24, you've done a great job so far. Don't get discouraged.
The problem with investors is they are greedy and impatient and think they know everything that Management knows. Today was brutal. We are now well below cash levels in the share price and with such a small float... good news will spring this baby back fast. I know you know this...sometimes when everyone around you is irrational, it's good to hear there are still some sane people out there.
Massive Tree-shake knocks out scared retail investors.
Big $ is using market sell off to knock out ma and pa so they can get access to VRNG $ on the cheap!
Well said Op1.
The only times I've seen so much talk about something being negative is because someone felt positive and wanted to accumulate shares from weak hands.
There is too much good happening here and when it runs... getting a sizable position won't be easy... unless you already built that sizable position before the run.
Happy New Year to all WDDD Longs!
You know why you bought.
You realize some will come in and sell thinking they can time a stock.
You know accumulation takes time and at any moment, settlement talks could skyrocket this stock (locking out those who keep talking up lower entry points).
You believe Susman is going to serve this stock well as they want to get paid (on contingency)
You see Kidrin always gets the money needed to move this forward and won't be tricked again by a smooth talking Hudson-type Co.
You see Kidrin reshapes financing(s) to benefit the company. Pushing out stock conversions.
You see the sub company WORX making money
You know Kidrin is quick to give news when it makes sense but also has shown he is a strong steward on cost control.
With a New Year, it only brings us closer to Settlement.
Old Owl and other Longs that have had posts dropped (including me) which made no sense... I am beside you and still see this coming together for us.
Happy New Year!
Tryz,
With great Due Diligence one could see Kidrin has many supporters who have helped get the company to this point along with Susman on contingency... but all longterm Longs know this. If you don't like the stock, what brings you here? Bungie employee? Just asking.
Take a moment... take a breath and think:
1) there is no cause for a Class Action here, this is a settlement not a financing where the merits/concerns were known and not disclosed.
2) Litigating is a real business... so anyone calling for VRNG to go find a real business can sell and go find that business you want. Someday, when you need a lawyer, tell him or her your thoughts and see how well you do without their help.
3) For those who haven't figured it out yet... VRNG gets the $21 Million for the licensing and the confidential part is most likely all VRNGs legal costs to date... which some of you seem to think is over $100Million. Not a bad settlement is it.
But don't take my word for it. Once the payment is made and VRNG can speak again (I'm certain they are under a radio silence order at present), Shorts will have had the chance to cover and those who didn't.. well, come on, it was trading below cash and Pearlman is a shareholder. He needs the shares to pop up as much or more than anyone on this board.
Don't let a snake swallow your shares with fancy stories of regret and yadda yadda... or go for it... after all, it is your money to lose or gain.
No ones seems to care that there was no official PR from the company
or that it's not listed on VRNGs website... very suspicious.
Why?
With cash of over $3/share, a tight float, a new product line, and a super low burn rate.... now (with ZTE &Google out of the way)... get ready for the great push upwards.
Merry Xmas
Go War Eagle,
If you feel I was talking about you... I find that interesting.
If you don't know why the stock is down... for someone whose name I've seen around here for months... well, that is shocking.
I've explained why it's down and it's more about Hudson than anything else.
But as always, don't get advice on a board from strangers... you never know what kind of people you're dealing with.
Instead, get ideas then go do some due diligence before committing $$$.
You know what's better than tax loss selling?
Holding your 'SPEC' investments long enough to change their tax status from short-term gains to long-term gains.
Ask you CPA what the difference would be for you on a gain of $1,000,000... you'll be glad you did.
So... how much of the high volume has been Hudson buying back?
Some very high volume days recently, great time to take advantage of tax loss sellers and frustrated retail investors...
2,000,000 shares have switched hands today already! That's incredible for a stock on the Pinks with NO (substantial) News!
So who's buying that many shares in a perceived 'SPEC' stock?
Good question... I can guess who, can you?
I suggest everyone looking at comments on this board go back and check how some posters have changed their tune dramatically towards this stock.
Some were very bullish while Hudson sold their 8 million shares which is one way to keep the price sold for them high
Now, some of those Bulls have become very negative citing Patent Board review & Bungie, why?
Seems like a good time (now that we have more of a future than ever) to scare retail and buy back those 8 million shares.
Sell at an average of 13 cents... $1,120,000 buy back at an avg of 4 cents, make 9 cents by 8,000,000 = profit of $720,000 while we wait for the Court decision.
30 Day Wash period is also completed for them so... let's not waste time harping on that.
All I can say... didn't sell a share and actually have added sub .04
Thanks Hudson
What the Shorts didn't tell you.
Now that VRNG has completed the Reverse Split...the shares are marginable... which means Longs can buy more with NO NEW MONEY... which means demand for shares goes up...which means stock goes up.
Tear those Shorts a new one... another note: the more the shares go up, the more margin available to buy more shares...The more Shorts get squeezed... Merry Christams to all Longs.
Yep.
Looks like Bungie just got themselves added to the infringers list (ahead of schedule).
Now WDDDs has little choice except to sue them to get the PTAB discovery it wants approved. This is good for shareholders. Susman has the Legal bill covered and to protect their investment, will be adding Bungie to their list. Overall, good news.
I'm certain they have made many... just very low or too low.
ATVI has a history of settling just before Court...
MyUnderstanding...
Great info, thanks
Airports.. yes but restaurants, coffee shops, car dealerships, oil change shops, etc, etc, etc...
Flicharge allows multiple devices and doesn't transmit a wireless frequency which makes it hack proof.
Remember, everyone thought Beta tapes were the standard but then VHS won... Same happened for Bluray.
Safety and ease will be what everyone wants... Flicharge has the patents.
As more and more people worry about being hacked... Flicharge wins.
Captart7,
So, you don't think getting a 'best in class' litigator in-house has any value to a company that has patents in an exploding marketplace? I beg to differ. They are now under the protection of VRNG which means infringing companies take licensing, etc more seriously.
This move was a HUGE game-changer for both companies.
Now watch VRNG Management start buying their own stock... BOOM up we go!
Excellent, thanks Data