A theory I have on why we seem to be getting some VHC sympathy and the share price has moved considerably post VHC
1. There may have been a group shorting most if not all IP stocks. This is called a 'sector bet'. Since there is no 'index' of IP stocks, a group simply looks up the names in the sector and select most of not all of those stocks and shorts them. This is simply based on a bearish view of the sector, and given all the issues around the PTAB/CAFC/AIA/Congress, Tech bellweathers using the tools of "efficient infringement" to avoid paying for theft, it was likely a very good and smart bet.
2. That being said, often such bets are made without understanding the specific nuances of the individual companies, and hedging each company with options may or may not be possible (ie vrng not enough OI to do it), and also eats into returns making such a strategy often not very lucrative.
3. In this case, it is possible, and my thoughts only, that such a bet was made. If sizable, it could explain why there was so much shorting in most IP stocks including VRNG and what many here felt was manipulation occurring. If so, yesterday's VHC move would have been catastrophic for individuals or groups making such a sector (short) bet.
4. As a result, that group/individuals would be forced to unwind their short positions in other IP stocks simply to pay for their losses in VHC.
5. Number 4 above would explain why we saw a decent amount of volume AH in VRNG, a big move in VRNG, SPEX and other IP stocks and actually do see some PM activity in VRNG as well. We haven't seen anything AH/PM for eons in this stock and oddly we do the day of and after VHC. Anyone wanting shares of VRNG could 'wait' as there really is no catalyst (we know of) on the immediate horizon, so for some reason, someone needed shares NOW. To me it sounds like forced covering.
6. I don't think DTV being potentially material would drive this stock.
7. It could also simply be 'fear based', where a number of shorts are realizing that taking gains is prudent, and that being greedy in these stocks can have a catastrophic result. But again, given there is no immediate catalyst here, one would wonder why they would not just slowly cover over the coming days vs this 'immediate' demand for shares.
Just some views but I am heavily leaning to a short sector bet/ covering being the reason.
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