Hunting for trolls
Tuesday, 16-Apr-2013 16:45 Email | Share | Bookmark
Hunting For Trolls
Hunting For Trolls
Just a last year, placing bets on shell companies seeking to sue large organizations for patent violation saw virtually zero interest. Turn the page and a yr later we find a virtual "troll" casino at hand. Finding the next possible hottest lawsuit victor within the troll space has the focus of many on Wall structure Street, especially as soon as the recent success regarding both Vringo, Inc. and also VirnetX Holding Corp., two trolls which have taken on huge firms and come away victorious.
Back on September 17th, I profiled a pair of companies in this room, one of them being Vringo along with the other, Worlds Incorporated., so today I'm going to revisit these two together with two others.
VirnetX Having Corp. (VHC) is a company which amazingly sports an impressive $1.69 billion (sure Air Jordan SC, I said billion) dollar market cover with just 13 workers and just this past Comes to an end (better known as "Speculation Friday" upon his show), John Cramer (Mad Money) told his audience there's "huge upside potential" in the investment. Why ? Well for starters air jordan 18, VirnetX was awarded more than $368 million dollars by the jury in a circumstance against Apple Corporation. (AAPL) for infringement of four patents. Immediately after the consensus, the company filed suit in opposition to Apple once again as many of Apple's products were not included in the initial suit due to their release dates.
Back on September 1st, VirnetX won a great order at their Markman Experiencing against both Avaya, Inc. and Siemens Enterprise Communications Inc. and just 1 day later the company declared a licensing cope with both NEC Corporation as well as NEC Corporation of America, phrases not disclosed apart from a one-time fee becoming paid along with long term royalties on sales.
Previous in July, Mitel Cpa networks Corporation (MITL) signed any licensing deal with VirnetX air jordan 6, furthermore an upfront payment accompanied by future royalties plus May of this year, Aastra USA decided to steer clear of litigation as well.
Additionally involved in litigation together with VirnetX is Cisco Techniques, Inc. (CSCO) and their tryout date approaches. To see status of all the measures taken against over named companies linked to either ongoing litigation or settlement/licensing, see web page 9 of the business's latest 10Q.
VirnetX has $52 thousand in cash, thus they're well funded, but there's over 20 million shorts gambling against the company's achievement and eventual court rulings, so I watch this stock because very risky, but in addition potentially very satisfying. The next catalyst will be the court's final ruling around the victory against Apple company.
Vringo, Inc. (VRNG) is a firm that just whooped up on Yahoo Inc. (GOOG) amongst many large corporations, as being a jury ruled throughout Vringo's favor back on November 6th, citing patent infringement and also handing down a monetary award against every single defendant plus continuous royalties against certain events. The company's intellectual property is made up of over 500 patents along with patent applications turning around telecom national infrastructure, internet search and cell technologies. Vringo is a organization that your grandmother offers probably heard of at this point, as it seems like there is no less than two posts written each day about it unfolding story, mostly regurgitated information from the long and small side, explaining precisely why their side is correct and why the business will either flourish or dive according to settlements, licensing deals along with possible is of interest.
With the stock now hovering around $3.00 and trading in an extremely less volatile manner, the next catalyst can come from Judge Jackson's last ruling in the Yahoo and google case and if he chooses to alter the jury judgment, as many have described the jury must have awarded $158 million coming from Google instead of $15.7 million. It's not unexpected the jury appears to have made a mistake, as most jury pools are certainly not derived from the sharpest instruments in the shed.
Let's also not forget that whenever the November advantageous verdict, Vringo immediately charged ZTE Corp. in several countries and obviously their leverage to get a possible settlement may be bolstered.
With a $251 million market cap, I like the stock below, but you might have to have patience. Even though the company has plenty of cash, there is still plenty of pants in the stock (around 11 million), although the short interest appears to be on the decline after the firm's recent first triumph. We've seen plenty of important bear raids in the past i suspect we'll observe several more before all is said and accomplished.
Another reason I like your stock here is as a result of my recent dialogue with Eric Rice, Chief Revenue Officer pertaining to Mimvi, Inc. Rice has nothing but praise with regard to Perlman and his team along with thinks the company has a bright future with all the ability they have. Mimvi, Inc. is an up and coming firm that's been called "The Google of Mobile Iphone app Search" and I'll speak about Mimvi more in depth on as time goes on, but they themselves are an organization to be on the search for, as they're utilizing Microsoft Corporation (MSFT) to develop products and services associated with Windows Windows Azure together with their Windows Mobile Eight platforms. Mimvi is in the process of applying for several patents that may be incredibly valuable addressing search and professional recommendation along with core calculations, not to mention a variety of future obvious applications and industry secrets under their belt. Whilst resident bears are convinced that Mimvi has no patents and that most technology is wrapped up in the hands of the company's Chairman CVO, Kasian Franks tells me in which his outdated patents have been transferred to Seeqpod, his aged company that offered a meaningful threat to the music industry. The patents ended up then ultimately received by Sony's "Intertrust" division and therefore are now water under the bridge and not highly relevant to what Mimvi is doing these days. Early short-sellers in this unfolding account also repeatedly point out Mimvi will be raising $2.8 million at .12 and Franks states that not only is certainly not true, they may not actually need to raise this money at all with the method things are progressing along with Microsoft. Franks can be as excited as a little one in a candy store, saying "Google search is archaic and what Mimvi brings to the table now is unique and will customize the world."
Worlds Inc. (ATVI). While some other patent trolls have seen their particular market caps burst to the upside on hopes of an final big payday, Worlds' present value sits within the $10 million range. The business's lawsuit claims that will Activision's "World of Warcraft" and "Call involving Duty" video games have each infringed on Worlds' patents that confirm a system and strategy enabling users to activate in a virtual space and including computer architecture in the 3-D atmosphere. Worlds' powerful legal counsel, Max Tribble has several impressive wins under his strip, including cases versus Microsoft, Dell, Oracle and IBM.
I have reliable resources that tell me celebrations associated with Vringo are taking an in depth look at Worlds as much as making an initial investment, thus making this story that much more interesting to follow.
SmartMetric, Inc. Federal Appeals Court around both Visa, Incorporated. (V) and Master card Incorporated (MA), whereby SmartMetric's patent for any information card inserted inside a card reading gadget was upheld. The company's Chief executive officer, Chaya Hendrick, stated, "The implications are enormous and that your court's ruling means that anytime a company in the USA besides SmartMetric uses a smart card inserted into a gadget like a bank ATM or a cash register in a store, they are in violation of our patent.In Air Jordan 11. The lawsuit versus Visa and MasterCard is scheduled with regard to trial next September, assuming settlement has not been reached by then.
In the meantime, SmartMetric announced last week the soon-to-be launch of their Healthcare Keyring that can store emr and connect to any Personal computer USB in the world. Hendrick informed me in a telephone appointment last week that there are 25 people in California, Argentina and also Israel working rapidly night and day in preparation of the highly anticipated launch. Hendrick also declared that other biometric engineering products will be approaching.
With a market cap of $21 million, SmartMetric is another name to watch tightly going forward for prospective upside as both Visa and Master card have continually fought unsuccessfully in their endeavours to suppress material related to the discovery procedure during the course of litigation. I would urge those considering hunting for the next effective troll to take a closer look with SmartMetric.
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