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 Internet security software specialist VirnetX (AMEX: VHC) popped as high as 12.5% in early trading Wednesday as the shares continue to climb back from last week's fall.

So what: It's tough to know for sure, but a bullish report from Florida-based investment house Dawson James on Monday seems to have been the catalyst for the recent mini-streak. Dawson James believes VirnetX shares are worth about $18.50 on a sum-of-the-parts valuation, with as much as $6.20 per share attributed directly to its recently filed suits against Apple (Nasdaq: AAPL), Cisco (Nasdaq: CSCO), et al.

Now what: On Friday, I speculated that VirnetX shares were poised for a bounce, but this week's 20%-plus rally even has me a little nervous. If Dawson James' analysis is to be trusted, there's about 25% of upside left to VirnetX's intrinsic value. Given the risks that still remain, however, I'd wait for another opportunistic pullback before taking another shot. 

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