Please ensure Javascript is enabled for purposes of website accessibility

Why VirnetX Shares Jumped

By Evan Niu, CFA - Apr 8, 2013 at 2:55PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful, or just another movement?

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 (VHC 4.92%) have jumped today by as much as 12% after the company announced that it has identified an additional developing specification related to its 3GPP LTE, SAE project.

So what: The company has submitted updates to its licensing declaration to the European Telecommunications Standards Institute as well as the Alliance for Telecommunications Industry Solutions to include the new specification. That brings its tally up to 18 specifications or developing specifications in its 3GPP LTE, SAE project where it hopes its patents and patent applications are or may become essential.

Now what: VirnetX will extend non-exclusive licenses to any company interested in implementing its IP, assuming its specifications are adopted as final standards. CEO Kendall Larsen said that the company believes its IP will be essential to the next generation of wireless networks. Shares got crushed last month after VirnetX lost a patent infringement suit to networking giant Cisco Systems, so today's bounce shows that investors are optimistic that VirnetX can recover.

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

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

VirnetX Holding Corp Stock Quote
VirnetX Holding Corp
$1.28 (4.92%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.