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ChaPaVe Partners looks for opportunity in securities of companies that have a controlling shareholder who may be hampering value for non controlling shareholders. In this effort, we created the Tactical Tender Offer (TTO) to align minority shareholders’ interests with controlling shareholders’... More
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  • Buy Vringo While Jury Is Deliberating 4 comments
    Nov 6, 2012 10:54 AM | about stocks: VRNG, GOOG, FB

    As we write this article, the jury in the Vringo Vs Google case is deciding on whether the Vringo patents were infringed and if they were, what the damages will be. We believe the longer it takes the jury to decide, the higher the likelihood for Vringo success.

    If you are looking to go long a tech stock and have a speculative frame of mind, we think the shares of Vringo (VRNG), which we have written about twice , are certainly worth the risk-reward ratio now that the trial with Google (GOOG) is at its midpoint.

    Moreover, Facebook certainly can be potentially viewed as an infringer of the same Vringo patents that Google is accused of violating. In fact, if Claim 1 of Vringo's U.S. Patent 6,314,420 applies to Google search and related ads, we feel it highly likely that Facebook's (NASDAQ:FB) desktop advertising would also be affected. If Vringo wins, a Facebook case is likely to follow.

    Moreover, the combination of the above claim and Claim 1 in Vringo's U.S. Patent 6,775,664 seems to be what Facebook is practicing in its retargeting advertising program. Retargeting tracks users travels using cookies on the web and redirect advertising based on what the user previously clicked. Certain cookie programs deployed by FB maybe considered wiretapping and is the subject of litigation which we have outlined in a previous article.

    Disclosure: I am long VRNG.

    Additional disclosure: This is a trade only for investors with a high tolerance for risk.I am short FB.

    Stocks: VRNG, GOOG, FB
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Comments (4)
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  • haroldfounder
    , contributor
    Comments (77) | Send Message
     
    Forward!
    5 Nov 2012, 05:54 PM Reply Like
  • sonicthoughts
    , contributor
    Comments (218) | Send Message
     
    I hope they notified Facebook already :)
    I understand that Google is challenging some of the patents with the USPTO - the review will take several months. If the jury concludes that the patents are valid, will that take it out of the hands of the USPTO or can they overrule?
    5 Nov 2012, 06:23 PM Reply Like
  • ChaPaVe
    , contributor
    Comments (106) | Send Message
     
    Author’s reply » The validity of the patents is ultimately the USPTO's job. There is a presumption of validity as they were the ones who granted them in the first place. Google's action is routine in this type of litigation.
    6 Nov 2012, 09:23 AM Reply Like
  • pattirose4
    , contributor
    Comments (3) | Send Message
     
    anyone have a target guess for this? I bought in during the frenzy today mainly because of the high volume and the halt and it would be nice to know how long to hold, thx
    6 Nov 2012, 11:50 PM Reply Like
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