Monday, November 5, 2012

Vringo, Inc. (AMEX:VRNG) Is Having Relief Rally After The Recent Turmoil

Vringo, Inc.(NYSEAMEX:VRNG) shares are showing relief rally today and soared 25% to $3.44. Last week, the stock had multiple bad sessions with a fall of 35% in a single day on Wednesday a federal judge spooked investors by concluding that the small tech company can’t get anything for the period before September 15, 2011. The conclusion came in related to the company’s fight with Google.

"Update - the stock seems to be gaining attraction  as the jury deliberating over the Google trial reportedly asks for instructions on damages."

(NASDAQ:GOOG) over patents. That means if at any time VRNG wins the case, they would be eligible to get claim from September 15, 2011.

Vringo has demanded for a percentage of the profits made by the search giant, Google, for the infringement. It wants to get a percentage of the profits made from 2005 to the present year. The company claims that due to the infringement, the company is owed about 500 million dollars at the least, by Google.

Stock Action So Far This Year

The sock started the year on very optimistic note and as of April, it soared about 400% on heavy volume. Then the stock moved within a narrow range and went into the consolidation phase. Then, the stock started to move higher once again since early October and jumped almost 100% from $2.80 to $5.73 within a week. The stock made a new all time high recently as well amid speculation that the company could win the ongoing case and after a U.S. court rejected Google (NASDAQ:GOOG)’s appeal for summary on the ongoing case with Google, valuing at around $700 million..

Just few months ago, analysts were bullish on the stock when it was trading around $3 level and stated that the stock could hit $30 if it wins the case against Google.

The last week sell off pulled the stock below its 50-Day Moving Average and 200-Day Moving Average of $3.77 and $3.66. Traders could see some sort of resistances at these levels.

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