VirnetX Shares Popped: What You Need to Know (VHC)

VirnetX Shares Popped: What You Need to Know

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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 accused patent troll VirnetX (AMEX: VHC ) jumped 12% in trading just before 1 p.m. ET after the company was upgraded by an analyst.

So what: Analysts at Craig-Hallum initiated coverage with a buy rating and a $50 price target. The market proceeded to have a panic attack, sending volume through the roof and the stock higher when it was down on the day.

Now what: Why should you care what Craig-Hallum has to say? You shouldn't really. The market has been grasping at straws with VirnetX and as a result the stock has been on a roller-coaster ride for the past year and this is just the latest case.

Apple (Nasdaq: AAPL ) is calling more of the company's patents into question and companies making 4G phones aren't exactly knocking down the door to license the company's patents. I just can't get behind VirnetX right now and think today's bump will soon wear off.

Interested in more info on VirnetX? Add it to your watchlist by clicking here.

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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On October 31, 2011, at 4:13 PM, myboynick wrote:

you sir are lacking information on VHC. VHC is the only company with technology that meets the ETSI Series 33 specifications for 4g encryption security and red fruit WILL be knocking down the doors to license. please do ur dd.
Report this Comment On October 31, 2011, at 4:15 PM, myboynick wrote:

also review patent litigation procedures so u aren't perdeived as naive.
Report this Comment On October 31, 2011, at 4:50 PM, porkfriedrayrice wrote:

I hate motley fool, They will do anything to bring VHC down. Virnetx patents are being re-examined by the courts and the Markman Hearing is set for January 2012. Validity will be accomplished. They were already Validated in the $200$ million dollar settlement from Microsoft, nothing has changed except for the infringers... Apple, Cisco etc. hold no prior art suggesting VHC is wrong on their lawsuit.
its like pistol whipping a blind kid.
Report this Comment On October 31, 2011, at 4:59 PM, tjsimone wrote:

Travis-
Have yhou looked at the GROWTH in VHC stock price, in the past year...
ALOT BETTER than any stock the The Motley Fools has recommended....
So, what do you know abotu technology?
Articles like these, is why i no longer belong to MF newsletters...
Report this Comment On October 31, 2011, at 5:06 PM, elias2626 wrote:

'and companies making 4G phones aren't exactly knocking down the door'
HAHAHAHAHHAHAHAHA
THERE ARE NO COMPANIES CURRENTLY PRODUCING 4G PHONES
HAHAHAHAHAHAH
FFFOOOOOLLLLLLLL
Report this Comment On October 31, 2011, at 5:37 PM, titus77 wrote:

This company is a public patent troll whose only notable income has been a settlement with MSFT. They generate about $20k in revenue a quarter (except for the most recent quarter where they booked $0 in revenue) and they have a $1B market cap. As long as their lawsuits keep working, good for them, but if one lawsuit goes the wrong way, this company will no longer exist.
Report this Comment On November 01, 2011, at 11:50 AM, myboynick wrote:

any comment now?

updated 1 day ago Sponsored by:
	DOW	12,454.83	-74.92	-0.60%
	S&P 500	1,317.82	-2.86	-0.22%
	NASD	2,837.53	-1.85	-0.07%

VHC	$30.12		+0.22	+0.74%
VirnetX Holding Co…		CAPS Rating:

AAPL	$562.29		-3.03	-0.54%
Apple		CAPS Rating:

0

VirnetX Shares Popped: What You Need to Know

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Comments from our Foolish Readers

Report this Comment On October 31, 2011, at 4:13 PM, myboynick wrote:

Report this Comment On October 31, 2011, at 4:15 PM, myboynick wrote:

Report this Comment On October 31, 2011, at 4:50 PM, porkfriedrayrice wrote:

Report this Comment On October 31, 2011, at 4:59 PM, tjsimone wrote:

Report this Comment On October 31, 2011, at 5:06 PM, elias2626 wrote:

Report this Comment On October 31, 2011, at 5:37 PM, titus77 wrote:

Report this Comment On November 01, 2011, at 11:50 AM, myboynick wrote:

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