Since last week, the company has been in mediation with the thieves over at AAPL. Tomorrow it all ends and the good judge will rule. The likely scenario is NO settlement, the judge slaps an injunction on AAPL; in turn, AAPL will file for an appeal. The news of an appeal may accompany a clever update from a Herb on the street, which might juxtapose with the reality on the ground, which is winship, and hit the stock with a bit of fright.

Rest assured, Herb is only interested in parlour tricks when it comes to VHC.

The only chance in red hell for Apple is a reversal of opinion at the patent office, which would temporarily toss VHC shareholders into the proverbial ‘fag box.’

But that’s not likely to happen.

If the stock gets hit on news of an AAPL appeal, simply buy the dips. The company is scheduled to throw CSCO into a lit fireplace in March, which should result in a $500 mill+ judgement. After that, expect VHC to sue others, merrily collecting damages along the way.

But the way this story gets past the courtroom is settlements + licensing agreements. The more they win, the more likely they will accomplish this stated goal, rewarding its shareholders with magnanimous returns.

If you are scared, a little yellow in the belly like Chuckard Bennett, go ahead and hedge your position with puts or sell some. I am prepared to endure some downside, as long as the core story remains the same.