Story Stock: $VHC Wants a Piece off of Every iTunes Purchase Ever Made

A lot of people I know have been minting coing long VHC. I used to own the stock at around $14, but sold it because I am a fucking moron. Nevertheless, there is a very interesting story to be told in the name. Long term contributor and friend of mine, Chuck Bennett, alongside the ever elusive “Devil”, have been heavy buyers of the stock and options for months. This is what I can tell you, relating to the story and why they feel it is going to $70.

VirnetX is a patent troll company, armed with some of the best attorneys money can buy. They are claiming ownership of the Secure Domain Names/Registry, in other words: every time you make a purchase via iTunes, VHC expects to get a cut. Their patents were recently validated by a Federal Judge, who ruled against Microsoft, awarding VHC $200 million. They have open lawsuits with a number of companies, including AAPL, pursuing the framework of royalty whoring established by QCOM many years ago.

One of their open cases against CSCO, AAPL, NEC and Aastra pertain to the core products of each company (think iTunes) and amount to $160 billion in sales, ANNUALLY. In layman’s terms, every time someone accesses iTunes via their iPhone or iPad, it violates VHC’s patents. Pretty sick, huh?

Regarding valuation: The company has $60 mill in cash, no debt, with a small burn. Bulls who know the story say the settlements to come may amount to over $8 billion. The bears who are being flamed in the stock point to other patent trolls, like CEVA and TSRA, who shot higher early, only to come crashing down later. Whether this is the next QCOM is anyone’s guess. It’s too hard to predict how a judge might rule. Nevertheless, the stock has been working and is clearly being recognized by investors as a story to watch.

Related: Inventors declaration.
vhc

Pardon the brevity of this post. There are people who know the story much better than I do and are welcomed to leave bullet points in the comments section.

Also Related: fuck, fuck, fuck! (note left by yours truly in The PPT many moons ago. There are 26 pages of notes in there.)

“Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939,” the Berkshire vice chairman said, “but I think civilized people don’t buy gold, they invest in productive businesses.”

Full Article

http://video.cnbc.com/gallery/?video=3000088395

These are the top ranked stocks in The PPT, using technicals as a barometer. I’ll be talking about long term PPT favorite, old position of mine and current position of  “The Devil” and Chuck Bennett, VHC, tomorrow evening.

Despite what the indices and the dicksuckers on CNBC tell you, the real market is near or at 3 month lows. I have proof.

Inside of The PPT, I set up custom indexes that represent the market. I will post the 3 month charts for you to bear witness to the carnage that has befallen the market in recent weeks. Oh how I long for the days when AAPL would go +10 and the Dow refreshed my somber demeanor with a +40.

Commodity stocks

Raw Commodities

Tech

GARP (Growth at Reasonable Price)–totally unreasonable.

Financials

Foreign Stocks

Social Networkers

This is a work of art, sweet molasses on top of hominy for the ears. Enjoy.

NOTE: Mandatory weekend viewing.

Did you know that if a delicious piece of pastry or donut was in front of my face right now, I would not eat it? Similarly, I will not touch anything but grass fed meat and will only indulge in red meat once per month, if at all. Also, I haven’t had a cup of coffee, aside from that one time when I met long term reader “J” at Keen’s steakhouse in NYC, for over 1 year, after habitually drinking 5 cups per day. I will not do it, due to my desire to reduce caffeine consumption.

On principal, I refuse to use anything but extra virgin olive oil and I never fill my tank with premium gas, only regular. When at home, I only listen to classical music and I’ve never used foul language around my wife and kids. Generally speaking, I don’t like answering my phone, but will reply to an email within seconds. I prefer Bordeaux wine over all others, especially from the year 2005 and I absolutely hate Pinot Noir. I only drink Earl Gray tea, but will refuse if it contains any sugar. I will only drink my tea with honey and a dash of milk (no homo).

Upwards of 90% of my wardrobe is dry clean only.

In the House of Fly, the food is organic and a regular snack consists of almonds and dried cherries.

I wake up every morning at 6:48 am, without failure, and my favorite composer of all time is Phillip Glass. I especially prefer Symphony no.9, mvt II, and play it in my home with great repetition.

I don’t sleep much, as I am either too concerned with the markets or reading a book. I rarely read anything but classics. At the moment, I am stuck on page 700 of Bleak House by Charles Dickens. Oh, and I don’t buy paper books anymore, just on the iPad.

My point: I am a creature of habit, highly disciplined in a number of ways. When I make up my mind about something, nothing can deter me from completion. These same behavioral traits can be noticed in my investing methods. Throughout the years you’ve noticed my stubbornness in FTK, MVIS, HANS, BWLD, GSVS, WNR and most recently CPST and YELP translate into unmitigated or negotiated winship. However, the times are changing and the mood has become exceedingly dour.

There was once a time when nothing could stop me, not even time itself. However, over the past few months, Le Fly has been plagued by a number of nuisances, most readily seen here on iBC through my investment malfunctions. In real life, there have been some truly unbelievable things gnawing away at my soul, attempting to sap my energy and vanquish my person from existence.

HOWEVER, let it be known, I shall not bend to the caprices of some asshole “star God” and will fight this cosmic curse thrust upon me until I am dead. On the hair of Hector, I will not negotiate my surrender, under any circumstances. This might very well come at a great expense to Mrs. Fly, who grows weary of the stock exchange and how it refuses to comport to my demands.

Let it be known, my path is being set, trail-blazed with the fire set by my soul. If you dare to follow me, be sure to wrap yourself in a fireproof cloak. This path is not for the faint of heart or weakest of skins.

Before the storm begins here, I want you to know grandpa stocks are doing just fine, dozing off on the porch, pleasantly going about their day without a care in the world. My positions in KMB and GIS are the envy of the market. But I also have a whole basket of other shit, behaving in an entirely different manner.

The jobs numbers were bad because we are repeating last year. This is almost identical to the fuckery that was 2011, only this time it will be sprearheaded by the fucking faggots in Spain. Why don’t you pussies revolt already?

Expect the data to get progressively worse, leading up to the Fed coming in and raping all shorts in broad daylight, with one of their fucked up plans. Then, miraculously, as the election nears, the data will improve. We will enjoy a terrific Q4 rally, as if this shit never happened.

Back in the old days, when a stock broke the $100 threshold, the shares were split 2 for 1. Only a handful of stocks kept their share prices at obnoxious prices, most aligned with the Great Fucktard himself: Warren Buffet. Do you know why companies don’t split their shares anymore?

Answer: because they don’t give a shit about the retail investor. The retail investor is no longer an integral part of the market place. They have been eviscerated by trading robots, cordoned off into corrupt areas of the market, such as 3x ETF’s. Gone are the days when you could value a company on its FCF and FPE.

Now to my point. The majority of people that I meet in real life are flawed animals, depraved beings with infected minds. Naturally, the internet is no different. I would never walk into someone’s home and throw meatloaf against their wall– and insult the caretaker or host of such a dwelling. Many of you are quite comfortable in flaunting your vagrant behavior by trying to rub salt in my wounds, declaring “I told you so” and gleefully walking about my website like a happy homo in the east village.

That’s where you are wrong.

This shit here is NOT for your entertainment. I am not the jackass clown in the glass box, waiting to be dunked into the water below. I WILL FUCKING KILL YOU, rip apart your limbs (legs, arms, head, chest cavity)–crush your bones into dust. All of you will be banned, all of you. I have already banned over 800 people, creatures of the blue lagoon, perverts, men addled with chemical imbalances. I have no problem carting you off to the crematory, so don’t fuck with me.

On a more pleasant note, I am being smashed like an accordion today, played by some monkey in a small Italian village. My WNR has been chopped and I’d rather not discuss YELP anymore. I am, without a doubt, the angriest man in the world.

First things first, I hope my personal hell hasn’t tainted the rose flavored water that you keep in storage. I like to think my feelings regarding Yelp were transparent and my ominous sense of doom clearly communicated.

The truth of the matter is, I am cosmically cursed. I haven’t made any sacrifices to the Gods for over 6 months and they are punishing me for it, in spades.

The jargon left in the comments section is repulsive and regrettably puported by small minded goat fuckers, who have seemingly escaped my lash.

The mainspring of this post is to serve as a reminder that I have a murderous rage inside of me and will make you pay your “fair share” for disturbing me on a day when my largest position was down 10% on good news. This is the quarter to accumulate Yelp, as they close in on profitability.

You are without top hat.

Tomorrow’s jobs numbers will set the tone. My mood is dark, so I am not optimistic about my prospects in the near term.

The curse needs to be lifted.

A blow up after all.

After all of the drama, the relief of an acceptable earnings release coupled with a muted response in the share price, I am having my head handed to me after all, long YELP. The stock traded up this morning; but I noted in conversations with “The Devil”, something was awry. The stock was trading odd and a big move was on the horizon. Literally, it could have gone either way. Today’s decline doesn’t mean anything other than the fact that sellers showed up and buyers are non-existent. I know that sounds a little too simple; but this story is young and the shareholder base is fickle.

I’ve had my share of blow-ups, several over the past few years.This 8-10% drop in YELP, coupled with the fact that my other positions are flat to down equates to a -2.25% day. That might not sound like a “blow up” to many of you; but -2.25% days are not welcomed around these parts any longer. This was supposed to be the year of flawless winship, accompanied by cocaine dragons and chest pounding gorillas. Instead I get milquetoast. I shot higher by 20% during the first month of the year and slowly but surely I am giving it back, just like last year.

Lo and behold, TDC is at new all-time highs today, formerly a top 3 position of mine.

Here I am, a most humble space alien magician, buying dips in ANR, VCLK and YELP, using the proceeds of a fine company, MJN, to finance degeneracy. On the eyes of Saturn, I will not sell any more grandpa stocks to buy shit. Correction, I am not saying those companies are shit, per se. Let’s just agree that their risk profiles are somewhat in flux.

Off to go hit somebody in the chest with a gravity hammer.

With MJN proceeds, I bought the dip in ANR and carnage in VCLK–way overdone in my opinion.

UPDATE: I am buying this YELP dip.