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VHC's new patent provides leverage in potential buyout negotiations.

An investment banker, introduced me to this company, when the share price was about two dollars.  It looked like a risky situation to me, so I didn't purchase any shares until the stock hit the five dollar range.  I have been trading common shares and options ever since.

The word on the street is that VHC might be in negotiations with potential buyers at a share price of between $40 and $60.  What is significant about today's patent news is that this gives VHC more leverage in their negotiations. Keep in mind that most likely, the potential buyers are also the patent infringers.  This added patent not only increases the value of VHC, but also creates a greater need for any potential buyer to own VHC, simply to avoid the patent infringement liability.

The other significant factor is that negotiations may have started when the share price was around $12.  Now that the share price is north of $20, the pressure on potential buyers is increased.  VHC is definitely sitting in the catbird seat.

Another rumor among Wall Street investors is that a number of patent infringement settlements could be announced soon.  That explains why Wall Street is buying at $20 and above.  Anyone who is buying at this level is expecting significant patent settlements, or a buyout in the $50 range.

I am maintaining my long position, betting on a buyout, and patent infringement settlements.