Why VirnetX Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of VirnetX have jumped today by as much as 12% after the company announced that it has identified an additional developing specification related to its 3GPP LTE, SAE project.
So what: The company has submitted updates to its licensing declaration to the European Telecommunications Standards Institute as well as the Alliance for Telecommunications Industry Solutions to include the new specification. That brings its tally up to 18 specifications or developing specifications in its 3GPP LTE, SAE project where it hopes its patents and patent applications are or may become essential.
Now what: VirnetX will extend non-exclusive licenses to any company interested in implementing its IP, assuming its specifications are adopted as final standards. CEO Kendall Larsen said that the company believes its IP will be essential to the next generation of wireless networks. Shares got crushed last month after VirnetX lost a patent infringement suit to networking giant Cisco Systems, so today's bounce shows that investors are optimistic that VirnetX can recover.
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The article Why VirnetX Shares Jumped originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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