Why VirnetX Holding Corporation Shares Jumped Today

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 Corporation (NYSEMKT: VHC  ) jumped more than 10% during Monday's intraday trading after SEC filings revealed a favorable order in the company's pending patent litigation against Apple.

So what: Specifically, a U.S. District Court issued an order awarding VirnetX an ongoing royalty of 0.98% on "adjudicated products and products not colorably different from those adjudicated at trial that incorporate any of the FaceTime or VPN on Demand features found to infringe at trial."

Now what: That could amount to an award in the hundreds of millions -- not unlike the $368 million judgment in late-2012 after jury decided Apple had infringed four VirnetX patents also related to FaceTime.

Of course, VirnetX will inevitably need to work through a lengthy appeals process before any court decisions are truly final, which demonstrates just how difficult it can be for small IP companies to actually cash a check. Even so, while it's hardly the final word, today's decision does represent yet another piece of the long-term puzzle for VirnetX shareholders.

Consider the 9 solid high-yielding stocks in this free report
For as much volatility as shareholders of patent companies endure, there may be a better way.

One of the dirty secrets that few finance professionals will openly admit is that dividend stocks as a group handily outperform their non-dividend-paying brethren. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.


Read/Post Comments (0) | Recommend This Article (1)

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 Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2862492, ~/Articles/ArticleHandler.aspx, 11/24/2014 4:45:37 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement