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SR System Analyst Active Trader Swing Trades Day Trades Technology/Biotech/Financial Stocks
My company:
WeeklyOptionPlays LLC
My blog:
Weekly Option Plays-
    Oct 30, 2012 4:26 PM | about stocks: FH

    VRINGO STARR OPERATION is going to end sometime in next few days. So no one knows for sure what will be the PPS after the jury decision is out. Even though there is a jury decision favourable to VRNG depending on the amount that is awarded, market can take news in Negative way and PPS will take a hit.

    Scenario 1: For Longs to prevail over shorts decisively VRNG has to be awarded any amount over 500M. Anything above that is huge bonus for the Longs like 1-3% royalties or treble damages.

    Scenario 2: While VRINGO is sure to win the case, any amount less than 150M-200M (like 100M)without any future royalties is considered to be a Loss for VRINGO. Any such news will be devastating for the share price and Shorts will prevail over the Longs. There will be a huge selloff in such cases. In Short term VRINGO's PPS will take a huge hit if the news is not great.

    Scenario 3: Worst Case Scenario Longs can expect is indecisiveness of Jury members in a situation where 5 jurors are favoring VRNG and 4 Jurors favoring GOOG. Any such news there will huge sell off to $3 or less.

    There is 4th Scenario which is a Google win which is not possible any means by the way the trial went through and kind of pacer updates we have seen.

    All the Best VRNG Longs.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in VRNG over the next 72 hours.

    Additional disclosure: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Stocks: VRNG

    Stocks: FH
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