The Vringo Vs. Google Verdict: Did Vringo Investors Win As Well?

In our last update on Vringo (VRNG), we discussed its unreasonable valuations and high risk for investors. The article got a lot of criticism from Vringo bulls. Since then, the stock has fallen more than 20%. In that update we were of the view that there was a good chance of Vringo winning the case against Google (GOOG), but calculations suggested that the victory was already more than priced into the stock. The final judgment on Vringo's first major litigation was announced yesterday.

The company has failed to live up to its settlement expectations. The stock is priced correctly at $3.6. We believe that if Google challenges the decision, the stock will likely slump further. Therefore, it is a very good time for investors to take profits. 

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