Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of VirnetX Holding (AMEX: VHC ) surged close to 18% today on what appears to be increasing speculation that Apple (Nasdaq: AAPL ) , Google (Nasdaq: GOOG ) , or another entity will bid for its patents related to 4G technology.
So what: We've seen this sort of behavior before. This time, speculative articles at Seeking Alpha and elsewhere suggest a bid isn't far off. How big a bid is unknown at this point, but considering that Google was willing to pay what amounted to an $8 billion premium for Motorola Mobility's (NYSE: MMI ) intellectual property, bulls are expecting a significant offer.
Now what: Fools should nevertheless be careful. Thanks to bullish speculators, the stock has more than tripled over the past year and is up more than 40% year-to-date. As such, much of the premium they expect could already be cooked into the price. Do you agree? Would you buy at these levels? Weigh in using the comments box below.
Interested in more info on VirnetX? Add it to your watchlist.