This post was just published on ZYX Short Sell Change Alert

 

A jury awarded Vringo (VRNG), $30M in past damages plus royalties on its patents until they expire in 2016, according to The Virginian-Pilot. The jury ordered Google (GOOG) to pay $15.9M, AOL (AOL) to pay $7.9M, and others including Target (TGT) and Gannett (GCI) to pay the remainder, though award is far lower than $5000 million  Vringo had sought. This has become a cult stock and the cultists may hang their hat on 3.5% royalty to be paid till 2016.

Our estimate is that the royalty stream is worth about $100 million — not large enough to sustain present valuation. Of course, our estimate may be wrong as full details are not yet available, therefore the reason for caution.

Stock is halted, zones only after the open if it opens higher. If the stock opens higher, we will provide short zone, stop zone and target zone.

CAUTION: KEEP QUANTITIES SMALL TO CONTROL RISK.

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