Virnetx Holding Corp. (AMEX:VHC)

CAPS Rating: 1 out of 5

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Player Avatar BuffettJunior1 (97.53) Submitted: 11/29/2011 1:45:34 PM : Underperform Start Price: $18.60 VHC Score: -52.03

This company is a total joke!

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Member Avatar tjsimone (< 20) Submitted: 12/23/2011 9:02:46 PM
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Yes, incredibly funny how great the future is, and how the stock price keeps rising....

Member Avatar sparx89 (30.64) Submitted: 12/27/2011 1:42:50 AM
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Hey Buffet Junior, check this out and see if you still think VHC is so funny and for anyone else confused about VHC and wondering if they should make the wrong call (or should i say put) and lose out. Cheers and enjoy!

http://thestockboss.blogspot.com/

Member Avatar BuffettJunior1 (97.53) Submitted: 12/27/2011 8:14:27 PM
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This stock is grossly overvalued! There is no way a company like this deserves a market cap of $1.3 billion. In the short run, the market is a voting machine. In the long run, it’s a weighing machine. In other words, I don't know what will happen to this stock in the short-term, however, in the long run, I'm positive that terrible companies like this always under-perform. Just because the stock price continues going up does not make this a good company. This company cant even earn $100k in revenues, and you think its a good buy? You got to be joking! Come back a few years from now and tell me how you did with this stock pick. I guarantee that you will have a completely different opinion about this stock then.

Member Avatar sparx89 (30.64) Submitted: 12/27/2011 9:30:36 PM
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The market is unarguably a factor of human psychology so actually I would argue it is always a voting machine. Maybe if other companies (MSFT, AAPL, CSCO among others) did not infringe on their patents but paid vhc before these court cases they would have 100k (definitely more) in revenues. How bout I come back in a few months after they win the upcoming markman hearing in the same court with the same judge with the same arguments as before and then tell you how i did? Is there a chance a company as mature as Microsoft had legal personal that could not find ways around VHC's patent claims and somehow Apple will pull a rabbit out of its hat and find a way? Sure, but one would assume MSFT did everything they could not to lose 200 million dollars. P/E isn't the only thing you can judge a stock by...

Member Avatar BuffettJunior1 (97.53) Submitted: 12/28/2011 3:52:29 PM
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In the long run earnings are the only thing that matter when it comes to stocks. Just like if you owned a business, its the earnings that matter or you wont be able to survive for very long. When I say earnings I'm talking about free cash flow not net income, which is an accounting number. Since this company is losing money you better hope they have some good patents that they can sell and make money from. Otherwise, I just don't see anything that justifies the huge valuation on this stock.

Member Avatar BuffettJunior1 (97.53) Submitted: 12/28/2011 3:58:30 PM
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There are literately thousands of companies like this out there. The only thing they do is take advantage of gullible investors. The only people that get rich are the management that runs the company. In the long run shareholders always lose out. This is very sad, but it’s true and it happens every day. I hope that you learn from your mistake when this stock starts plunging. You will see that I was right.

Member Avatar sparx89 (30.64) Submitted: 12/29/2011 12:51:35 AM
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I agree with the point concerning the fcf, however not sure how this company is "losing money" yes they are not making revenue currently however as I referenced earlier if the defendants whom VHC is taking court had made agreements to use their patents before being sued then there's no doubt they would be in the green. And really, they would have some serious cash flow.The markman hearings next month should provide you a reminder that this companies' true value has yet to shine and once the money from the infringement suits as well as royalty rates come into play, there will no doubt be an extreme positive impact on this stock. I do believe they have distinguished themselves from other trolls as they have already proved victorious against MSFT. Recently, not sure if the longs were taking profits from lower price levels or if the shorts decided it was time to step in (dare i say naked shorts with that burst of volume at the at the end of the bell on Tuesday right before the 30$ zone) however Markman is next week so we shall soon see what direction VHC is heading (a clue, its not sideways or down)... also wondering why you think there is something Cisco and the others have in their bag that Microsoft didn't BuffetJunior...

Member Avatar sparx89 (30.64) Submitted: 12/29/2011 12:53:03 AM
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*...defendants whom VHC is taking to court.... apologies for the grammar.

Member Avatar sparx89 (30.64) Submitted: 12/29/2011 12:53:04 AM
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*...defendants whom VHC is taking to court.... apologies for the grammar.

Member Avatar tjsimone (< 20) Submitted: 1/6/2012 10:53:18 PM
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So how you doing....up 50 %...just about..

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