Vringo, Inc.(NYSEAMEX:VRNG) shares are showing heavy selling pressure this afternoon after opening with strong gains. The stock opened higher by about 5% and rose as much as 11% followed by a sharp reversal. The stock is now down 22% to $3.11, just near to session’s low of $3.06.
There were minor insider selling on Friday including COO Alex Berger - 4,000 shares at $4.08;CTO Andy Lang - 9,058 at $4.08;CEO Andy Perlman - 1,500 at $4.05; and Director Seth Siegel - 2,000 at $4.05. The sales were made within a pre-established Rule 10b5-1 plan.
The company has been under trial case against Google, for a patent case, which has been driving the company’s shares wild. On expectation of positive outcome, the stock has shown massive rally of about 500% since the beginning of the year and made an all time high of $5.73 earlier this month. However, as the trail progresses, shares of the company started selling off and VRNG is off 43% from all time high.
In the latest development, On Tuesday, Google Inc(NASDAQ:GOOG) filed couple of Motions for Judgment as a Matter of Law, which is intended to request the court to dismiss the patent between both the companies.
This is not the first time, Google has requested for the denial of case, in fact recently, the company’s request was denied when Google stated that there was no potential information that Vringo could present at trial that could justify a verdict for Vringo, and therefore, a trial would be a waste of time, and the Court should enter summary judgment for Google.
Well whatever be the outcome, VRNG is expected to show wild run up or down in coming sessions amid solid fight going in between the blue chip company and small cap company (which was a penny stock in early 2012).
Technically speaking, the stock has fallen below its 50-Day Moving Average and 200-Day Moving Average of $3.82 and $3.62 respectively.