VirnetX Holding Corporation (AMEX: VHC) Up 40% In A Month
With headquarters in Scotts Valley, San Francisco
, CA., VirnetX Holding Corporation, the secure communicationssoftware and technology company, the stock has been demonstrating impressive performance for the last month. VHC closed Tuesday's trading session at $9.15 with a volume of 2.28M shares, and reached the psychologically important resistance level of $10 a share for a few minutes yesterday. At one point today, shares of VHC traded at an all time high of $10.40 before crashing back down to $9.50 on more than average volume just a few minutes ago.
For the dramatic price swing in September (shares were trading at around $6 in the beginning of August), VHC has become one of the most recommended and buzzed about investments by almost every specialized technical analysis site, due mainly to the incredible relative performance against the rest of the technology industry. The over-performance of VirnetX's stock has positioned VHC as one of the top 5 companies after the stock gained 5.03%, while compared to the highest gaining company in the industry, Netezza, who gained 6.98% in the same period.
Other measures of market performance also show that VHC has become a favorite for small-cap investors: VHC presents one of the 5 lowest beta in the application software industry with a score of just 0.6, while Simulation Plus leads this ranking with a beta of 0.4. This indicator measures the volatility the stock is showing in the markets, and therefore the lower score reflects a lower perception of risk from investors.
The single event that can be attributed to the huge explosion in price and interest from investors in the company in the markets came with the victory in a multi-million dollar suit against Microsoft Corporation in March 2010. In the suit, VirnetX claimed that Microsoft used the company's virtual private networking (VPN) technology patents in several of their products without paying the licensing fees. The judge agreed.
VirnetX Holding Corporation (AMEX: VHC) Up 40% In A Month
By: Ronald Russo
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