Has SAC Capital Advisors and the other big shorts gone from the hunters to the hunted?
Nobody knows how large SAC Capital’s short position is in VHC. SAC has been rumored to be the largest short, but given the secrecy umbrella that these private funds operate under the size of that position and how it is hedged is unknown outside of SAC.
SAC is facing a myriad of legal problems with current and former employees convicted or indicted for insider trading and bribery. The FBI and the Justice Department are now following the trail up the ladder to the CEO Steven A. Cohen.
While SAC has been one of the more successful Hedge Funds its bet against VirnetX appears to have been a blunder. Other hedgies are in the same position and with over 15 million shares short they have a problem.
It is in this context that Cramer came out and recommended VirnetX. Cramer now appears to be better informed than he was in his past comments concerning VirnetX. I would believe he made the calculation that Apple will eventually be forced to settle with VHC and that among CISCO, Siemens, and Avaya there will be one or more licensing agreements prior to their March 4 th trial date. He has probably also deduced that VHC is readying its next set of target companies for new infringement suits.
This compressed time line and the outsized short position could prove volatile and burn the shorts big time.
Cramer is an opportunist, and at times a mouthpiece for his clique of Wall Street friends. It looks like they now have a new prey in their sights and are going in for the kill.
Mobile Tech Security Presentations
http://3g4g.blogspot.com/2012/12/2-presentati...ology.html
Slides of interest for presentation 1: 27, 32, 33, 37, 38, 39, 47
Slide 47 has the applicable standards that Virnetx has declared for including:
23.228 and 33.401
Slides of interest for presentation 2: 3, 4, 5, 6, 9, 20
GO VHC !
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